TL;DR
- Bitcoin miner reserves fall to lowest levels since April 2021.
- Sale of Bitcoin by miners and profit taking by short-term holders.
- Concern about the decrease in active addresses on the network and the drop in the price of BTC.
The recent decline in Bitcoin (BTC) miner reserves has sparked concern in the market as they reached levels not seen since April 2021.
This phenomenon coincides with a decline in the price of Bitcoin, falling below $63,000, which has led to a wave of selling by miners and profit-taking by short-term holders.
Miners' reserves hit a low not seen since April 2021, while active addresses lagged, and #Bticoin short-term holders took profits.
Let's look into some of our analyst's research from the last week ⬇️
— CryptoQuant.com (@cryptoquant_com) March 19, 2024
Analysts such as CryptoQuant point out that this trend could indicate increasing selling pressure on the crypto asset.
Furthermore, a decrease in active address activity has been observed on the network, despite the increase in the price of BTC during this month.
Profit taking by short-term holders reflects patterns seen in previous market peaks.
Suggesting a possible turning point in Bitcoin’s price trajectory
Despite the initial optimism generated by the influx of retail investors into BTC ETFs, the subsequent pullback resulted in weekly losses of more than 15% and liquidations in the hundreds of millions, which has left investors concerned about the future of the cryptocurrency.
However, there is some optimism ahead of the upcoming halving event and the possible arrival of new retail investors, which could fuel a more substantial rally for BTC.
With more than 93% of Bitcoins already mined, the next halving event, scheduled for a month from now, marks a significant milestone for the leading cryptocurrency.
Declining miner reserves, coupled with profit-taking by short-term holders and concerns about low activity on the network, suggest a pivotal moment for Bitcoin’s price trajectory in the coming months.
