On-chain data shows that Bitcoin miners have been selling at a historic rate recently. According to analysts, this likely means a drop for the BTC price. Meanwhile, analyst alias Pentoshi sees strong failure potential for BTC.
There is an increase in the entry of Bitcoin miners to the exchanges!
According to data from on-chain analytics firm Glassnode, miner stock market entries have reached their highest value of $70 million in the past few days. “Miner entry to exchanges” is an indicator that measures the total amount of Bitcoin that miners have transferred to the wallets of all centralized exchanges. When the value of this metric is high, it means that miners are currently sending a large number of coins to these platforms. Usually, these Blockchain validators deposit their BTC on exchanges for sale-related purposes. Therefore, it is possible for such a trend to have a bearish effect on the value of the cryptocurrency.
On the other hand, lower values indicate that selling pressure from miners may be low at the moment. This is because this group is not currently investing significant amounts of money in exchanges. Now, let’s look at a chart that shows the trend in the entry of Bitcoin miners into exchanges over the past few years.
The value of the metric has been quite high lately / Source: GlassnodeAs seen in the chart above, there has been a recent increase in the entry of Bitcoin miners to exchanges. This shows that miners have been sending huge amounts of money to these platforms over the past few weeks. These highs of the indicator emerged as BTC gradually moved downwards. According to experts, this recent market environment has caused some miners to panic sell their holdings.
Since these entries have increased, the asset’s value has plummeted below the $26,000 level. It’s possible that this recent drop in price was fueled in part by dumping by this group. The chart shows that at the peak of these inflows observed on June 3, the indicator reached a value of around $70.8 million. This is a historically outstanding level for the metric, as only two trading days over the entire lifetime of the coin saw miners deposit on a larger scale.
Warning: Strong failure potential for BTC!
The crypto analyst, nicknamed Pentoshi, warns that BTC is at risk of witnessing further selling events. The analyst says that Bitcoin looks dangerously close to breaking the close support near $25,000. According to Pentoshi, a stock market correction is likely to catalyze the next drop for BTC. In this context, the analyst makes the following statement:
The thing is, I feel there is strong potential for BTC and ETH to break out of these 90-day ranges in the context of general weakness in the crypto markets, and with SPX and NQ likely at or near local tops. I’ve marked the two most interesting levels in a break from here.
Source: Pentoshi/TwitterPentoshi’s chart shows that a move below $25,000 could bring BTC down to around $22,600 first. Also, the analyst points $20,000 as the last support line.
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