Could Bitcoin miner sell pressure indicate further upside potential?

Bitcoin miners are selling their BTC holdings at rates not seen since early 2021. Moreover, since 2017, no sustained negative net change in his position has occurred. utility bills, loans, etc.

btc mineres
Source: Glassnode

Since 2020, miners’ net bitcoin positions have been negative five times. Bitcoin saw significant price gains in his four of these five occurrences in the months that followed. There was also continued selling by Bitcoin he miners throughout the 2017 bull market.

The sale of bitcoin by miners can be seen as a sign of a market downturn, but it has historically also portended a rise in the price of bitcoin.

The only period in Bitcoin’s existence where miner accumulation has occurred alongside bullish sentiment is after the COVID crash in May 2020 and when Bitcoin hit an all-time high in November 2021. did.

However, miners are sending fewer and fewer Bitcoins to exchanges. It is unclear if this explanation is related to the failure of some exchanges during the bear market, or to his increasing availability of P2P OTC trading.

The chat below shows how much bitcoin has been sent from miners to exchanges since 2016. Bitcoin miners are selling their coins at an accelerated pace, which could indicate future upside potential.

btc transfer amount
Source: Glassnode

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