Bitcoin miners reduce holdings amid bearish market sentiment
Bitcoin (CRYPTO:BTC) miners have started to reduce their holdings, signaling caution in the market as concerns about a potential price drop arise.
On-chain data indicates a steady decline in the balances held by Bitcoin miners since the start of September, suggesting they are offloading their coins to secure profits or maintain liquidity.
Based on data from Glassnode, Bitcoin miner balances have gradually decreased since September 2.
Currently, miners hold around 1.8 million BTC, valued at approximately $99 billion.
This reduction in holdings typically indicates that miners are selling due to low profitability or broader market concerns.
Interestingly, the selloff continues despite a 15% surge in miner revenue from transaction fees and block rewards over the past two days.
Bitcoin has lost nearly 5% of its value over the last week.
The recent uptick in miner revenue, alongside their decision to sell, points towards a strategic move to secure profits amidst market uncertainty.
Miners might also be selling their holdings to cover operational costs or ensure liquidity, particularly as Bitcoin struggles to surpass the $60,000 level.
The market sentiment surrounding Bitcoin has remained negative since the miner selloffs began, with a weighted sentiment score of -0.49.
This score, which measures the overall market mood, suggests prevailing emotions of fear, uncertainty, and doubt (FUD).
The Fear and Greed Index further supports this, indicating a state of fear among market participants, making BTC holders risk-averse.
According to analysts, if selling pressure persists, Bitcoin could drop to $55,246 in the near term.
Should this support level fail, the price might fall further, potentially dipping below $50,000.
However, based on current market conditions, a shift to positive sentiment could see Bitcoin retesting resistance at $58,790, with a potential target of $61,655.
At press time, the Bitcoin (BTC) price was $57,132.26.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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