On-Chain Data Shows Bitcoin Miners Hold Off On Selling Despite BTC Rallying Above $57k

Keshav Verma

1 year ago

3 mins read

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According to on-chain data, Bitcoin miners seem to be holding off on selling BTC despite the recent rally where the coin has crossed $57k.

Bitcoin Miner Reserves Continue To Move Sideways

As pointed out by a CryptoQuant post, BTC miner reserves continue to trend sideways amid the coin’s strong move up.

The “miner reserve” is a indicator that shows the total amount of Bitcoin that miners are currently holding in their wallets.

An increase in the metric’s value suggests miners think the coin’s value will go up in the near future, hence they are stocking up on it.

While a decrease would mean they are taking their profits as they expect a correction or bear market in the future.

Here is a chart showing the trend in the value of this indicator versus the BTC price over the last year:

The BTC miner reserve seems to be treading sideways | Source: CryptoQuant

As the above graph shows, the indicator’s value has been moving rather sideways recently, despite the sharp move up in Bitcoin’s price.

Generally, such a move implies miners are either neutral or bullish about the crypto. Many of them are still taking out some coins, while others are adding back in similar amounts. This is why the reserve is looking very balanced at the moment.

On a closer look at the chart, it becomes apparent that the metric also showed a bit of sideways movement during the rally that took BTC to the current all time high (ATH).

Perhaps something similar will happen here so it can be worth keeping an eye on these miner reserves for any movements in either direction.

BTC Price

At the time of writing, Bitcoin’s price floats around $57.5k, up 22% in the last seven days. Over the last month, the crypto has accumulated 26% in gains.

The below chart shows the trend in the price of the coin over the last five days:

BTC's price shows strong movement up | Source: BTCUSD on TradingView

Bitcoin has shown a lot of volatility recently, but the price has still been showing an overall upwards trend as the coin now crosses $57k for the first time since May of this year.

It remains to be seen if the crypto can keep up this momentum and make a new ATH soon. Signs seem to be leaning positive as a supply shock now seems to be brewing in the market as shown by the exchange reserves of the coin that have fallen down to lows not seen since October 2017.

Featured image from Unsplash.com, chart from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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