BTC miners sell off holdings as $100K stays out of reach

Bitcoin (CRYPTO:BTC) miners have been offloading their holdings in recent weeks as the coin struggles to cross the $100,000 mark.

BTC is currently priced at $98,535, down 1% from its all-time high of $99,860 reached during the Friday trading session.

Data from CryptoQuant shows that Bitcoin’s miner reserves have dropped to 1.81 million BTC, marking the lowest level since the start of the year.

Miner reserves represent the coins held in miners’ wallets, and a decline suggests active distribution to take profits or manage mining expenses.

The miner netflow metric, which measures the net buying or selling activity of miners, is currently negative at -1,172 BTC.

A negative netflow indicates that miners are selling more Bitcoin than they are acquiring, often a bearish signal that could foreshadow a short-term price dip.

This selling trend reflects miners’ need to offset increasing operational costs or capitalise on high prices before further market stagnation.

Continued miner sell-offs could apply downward pressure on BTC’s price, especially if combined with reduced buying activity.

Despite the increased selling activity, Bitcoin’s overall bullish momentum remains intact, as indicated by the Parabolic Stop and Reverse (SAR) indicator.

The SAR dots, currently positioned below BTC’s price, signal a continuation of the upward trend and encourage long positions.

If the bullish trend holds, Bitcoin is expected to reclaim its all-time high of $99,860 and potentially break the $100,000 psychological barrier.

However, a surge in profit-taking could reverse this momentum, with BTC potentially falling to a support level near $88,986.

Traders and investors remain cautiously optimistic, balancing the ongoing miner sell-offs with signs of sustained bullish sentiment in the broader market.

At the reporting, Bitcoin price was $98,477.89.