Miner Selling Pressure Declines, Could Fuel Bitcoin Rally, Blockchain Analysis Shows
Miner outflows have slowed since January. The last time this happened, bitcoin went parabolic.
Mar 12, 2021 at 3:11 p.m. UTCUpdated Aug 19, 2021 at 7:59 a.m. UTC
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Selling pressure on bitcoin (BTC) miners has been declining after a major sell-off in January. This could be a positive thing for bitcoin, seen as a “catalyst for prices to float higher,” according to a report by Stack Funds, a provider of cryptocurrency index funds in Asia.
- Miners' seven-day outflows are at the lowest level in five years, currently trading around the 1.0 level, according to CryptoQuant, a South Korean cryptocurrency data firm.
- The last time the miner outflow indicator dipped to current levels was back in 2015 when “bitcoin went on a parabolic rise that lasted more than two years,” according to Stack Funds.
- The breakdown in the outflow indicator suggests miner selling pressure will continue to remain low.
- “Overall, most fundamental indicators suggest miners are back into accumulating, and we expect $50,000 to be a strong support handle for bitcoin in the near term,” according to Stack Funds.
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