Bitcoin Miner Sell Pressure Drops, Indicating Positive Trend for BTC Recovery
Bitcoin (#BTC) has experienced a significant drop in miner sell pressure following the Fed-induced pullback in December. During the late 2022 rally, miners engaged in profit-taking.
Recent data shows a reset in miner sell pressure as it remained below 1, according to Charles Edwards, founder of Capriole Investment, which he views positively for BTC.
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Photo: Capriole Investment
Miners’ intense selling coincided with a local price peak of $108K last month. CryptoQuant data indicates that miner reserves decreased from 1.813M to 1.807M BTC, meaning over 6K BTC were offloaded in December and nearly 8K BTC since late November.
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Photo: CryptoQuant
The Miner Reserve metric remains stable above 1.80M BTC, indicating reduced sell pressure. This decrease in miner profit-taking may allow BTC to recover from December's losses and potentially surpass $100K.
Increased demand from large entities like MicroStrategy has absorbed recent BTC supply, contributing to a supply shock on exchanges, as noted by analyst Willy Woo.
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Photo: X
The combination of low miner selling and heightened demand from large players could facilitate BTC's recovery. Currently, BTC is valued at $98.9K, reflecting an increase of nearly 8% from a low of $91.5K.
Upcoming events, including the FOMC Minutes and US labor updates, may introduce volatility. The Fed's hawkish stance previously led to market-wide sell-offs, raising concerns about potential selling pressure.
BTC trader Cryp Nuevo anticipates a rise towards the liquidity pool near $101K. The sustainability of the recovery above $100K will depend on these macroeconomic updates, followed by attention shifting to President-elect Donald Trump's inauguration on January 20.
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Photo:X