Bitcoin Miners’ Selling Pressure Reaches Its Lowest Point Since 2024 — What Does This Mean? | Bitcoinist.com
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After peaking at a three-month high of $103,800 on Friday, May 9, Bitcoin’s price had a gradual beginning to the weekend before continuing its upward trend towards $104,000. While the leading cryptocurrency remains above the $100,000 threshold, market participants seem optimistic about its potential to reach new highs in the upcoming weeks.
Notably, Bitcoin miners, who have displayed a more reactive stance since the fourth halving in 2024, now appear to be regaining confidence in BTC’s price. Recent on-chain data indicates that miners have been retaining their assets during the recent weeks, coinciding with the latest surge in Bitcoin’s price.
Are Bitcoin Miners Preparing For An Extended Rally?
In a post dated May 10 on X, the crypto analytics platform Alphractal disclosed that Bitcoin miners are becoming less active in the marketplace, choosing to accumulate their mining rewards rather than liquidating them for immediate gains. The key metric here is the Miner Sell Pressure, which gauges the selling activity of Bitcoin miners over a specified duration.
This metric contrasts the total BTC outflows from miners in the last 30 days against the average quantity of coins in their reserves during the same timeframe. The Miner Sell Pressure indicator offers important insights into the actions and sentiments of this significant segment of network participants.
In the chart provided, the red color signifies heightened selling pressure among Bitcoin miners, typically correlating with a sluggish market condition. Conversely, the green hue indicates low seller pressure, which could be a favorable sign for Bitcoin’s price.
Source: @Alphractal on X
The chart illustrates that the Miner Sell Pressure metric shifts into the red zone when the Miner Pressure moving average (represented by the blue line) crosses above the upper band (shown in red)—indicating strong bearish sentiment from miners. In contrast, when the Miner Pressure line dips below the lower band (depicted in green), it suggests diminished selling pressure from miners.
According to data from Alphractal, the Miner Pressure line recently fell below the lower band, indicating that miners have been retaining their coins in recent weeks. The analytics firm pointed out that this measure is at its lowest since 2024, as miners seem poised for a price rise in Bitcoin.
Although the Bitcoin market has evolved such that miners’ sell-offs have less significant influences on prices, a prolonged phase of low selling pressure from these network participants could naturally be bullish for the leading cryptocurrency. Alphractal, however, warns that renewed selling activity could emerge as prices fluctuate in the coming weeks.
Bitcoin Price At A Glance
Currently, the price of BTC is approximately $104,250, reflecting a rise of over 1% within the last 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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