Miners Sell Over $100 Million Worth of Bitcoin in the Past Week

In a significant development, as of August 25th, Bitcoin miners held a total of 1.831 billion BTC. However, by the end of August 31st, their reserves had dwindled to only 1.827 billion BTC. This means that over the past seven days, miners have sold off more than 4,000 BTC. It’s worth noting that miner reserve data tracks real-time changes in wallet balances and mining pools. When these figures decrease, it signifies that miners are currently offloading their holdings, thus creating selling pressure.

Notably, Bitcoin miners currently control around 9.4% of the total BTC in circulation. This emphasizes why strategic investors closely monitor their trading activity.

Bitcoin Miners’ Reserves in August | Source: Glassnode

At the time of writing, BTC was trading around $25,960, experiencing slight fluctuations over the past 24 hours. At the current trading price, miners have successfully sold BTC worth $103 million. However, if there isn’t enough demand to counter the selling pressure from miners, the price of Bitcoin could dip below $25,000. Nevertheless, the order book of the exchange reveals that many strategic traders have set significant sell walls at around $25,000 to mitigate the risk of BTC trading at this level.

According to the chart below, BTC traders have placed orders to buy 5.6 million BTC at a price that is approximately 5% lower than the current market price of $25,800. On the flip side, in terms of resistance, traders have only put up 3.7 million BTC for sale. The on-chain market depth chart of the exchange illustrates the volume of orders that Bitcoin traders have placed on recognized trading platforms.

Market Depth Chart for On-Chain Data of September 2023 | Source: IntoTheBlock

Despite the selling pressure from miners, the current market demand for BTC still surpasses the supply by approximately 1.9 million tokens at the current price level. This is a crucial signal indicating that strategic traders may accumulate the $103 million worth of BTC that miners have sold off. If this scenario unfolds, they could prevent Bitcoin from breaching the critical support level of $25,000.

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