Bitcoin Miners Selling BTC as Price Drops Below $26,000
A recent on-chain analysis has revealed that Bitcoin miners have entered a selling spree as the price of Bitcoin dropped below $26,000 on August 26. This has raised concerns about whether the bullish Bitcoin traders will be able to hold firm at the $25,000 support level.
Key Points:
- Bitcoin miners have sold over 4,000 BTC in the last seven days.
- Miners currently control about 9.4% of the total BTC in circulation.
- Miners’ selling pressure could cause Bitcoin’s price to drop below $25,000.
- Strategic traders have placed active orders to purchase 5.6 million BTC, exceeding the selling pressure from miners.
- If strategic traders absorb the offloaded BTC, they could prevent Bitcoin from losing the critical $25,000 support.
According to on-chain data from Glassnode, Bitcoin miners have been offloading millions of dollars worth of BTC from their reserves since August 26. The miners’ reserves have dwindled from 1.831 million BTC to 1.827 million BTC within the last seven trading days.
While miners currently control about 9.4% of the total BTC in circulation, their selling pressure could potentially push Bitcoin’s price below the $25,000 support level. However, strategic traders have placed active orders to purchase 5.6 million BTC, which exceeds the selling pressure from miners.
Therefore, if strategic traders are able to absorb the offloaded BTC, they could prevent Bitcoin from dropping below the critical $25,000 support level.
Hot Take:
The selling pressure from Bitcoin miners raises concerns about the price of Bitcoin dropping below $25,000. However, the presence of strategic traders with active orders to purchase BTC indicates that there is still sufficient demand to counter the selling pressure. This suggests that Bitcoin may be able to hold firm at the $25,000 support level, preventing further price decline. The market dynamics between miners and strategic traders will play a crucial role in determining the future trajectory of Bitcoin’s price.
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