According to a Glassnode tweet, Bitcoin miners’ revenue has continued to decline, while the cost of production has also increased due to the market’s current state. Tron DAO also transferred $100 million $USDT to Binance to buy more BTC and TRX, according to WatcherGuru.
BTC Miners Increase Selling Pressure
Bitcoin is currently trading at $29,907.00, down 4% from yesterday. The daily and weekly charts show that the relative strength index has returned to the 50 neutral mark, which suggests that the recent price surges are not yet strong enough to trigger a significant rally. On the weekly chart, the index is the most negative since March 2020, when the crypto market started to rise.
Although indicators can still be oversold, a price downtrend can still occur within the next couple of weeks. It means that the upside potential for Bitcoin is limited with resistance at the 50-day moving average of $33,371.
Using the Puell Multiple, a market metric, Glassnode tries to estimate the value of bitcoin by considering the daily issuance value of the currency and the 365-day moving average.
The Puell Multiple shows a negative divergence when a bear market is in its last phase, indicating that it is entering a capitulation range. Currently, the metric is at 0.66, which is a crucial point in the range that could lead to a reversal.
According to the analysis, the miner balances are decreasing, and miners are spending more. The total position change in the miner balance is between 5k and 8k BTC monthly.
The increase in the miner balance suggests that the behavior of the miners has changed. Analysts previously estimated that during the first few days of the ATH, they had accumulated around 12k BTC. However, the selling pressure has increased since the Luna LFG sold over 80k BTC.
According to data, the mining industry has been growing significantly, and the cost of production has increased. However, the revenue from these activities is declining. The market is currently trading between a weekly high of $31,400 and a low of $29,000, signifying a green market. It is the first sign that the market is starting to stabilize following nine weeks of red.
Bitcoin Remains Bullish
In November 2021, Bitcoin hit an all-time high before the crypto market spiraled downwards. Its value subsequently dropped by over 50%. The subsequent fall of Terra also severely affected the industry. The weakening or bullish sentiment has caused investors to panic and withdraw their money from the market.
Since November of 2021, the price of both Ethereum and Bitcoin has dropped by more than 40% due to the volatility in the market. Notably, during the past couple of months, the price of Bitcoin has been volatile but despite the recent volatility, investors are still confident in the future of crypto. With the price of Bitcoin at $29,000, investors can still feel that it has stabilized.
Meanwhile, despite the various factors that have contributed to the decline in the market capitalization of Bitcoin, experts believe that it will still face more volatility in the coming months. The overall market cap of Bitcoin has been down by around 43% over the past couple of months. However, there are still some positive signs that the market can recover.
Although a bearish crypto market is not ideal for everyone, it’s still important to take the good with the bad to avoid getting stuck in it. Having a bearish stance allows investors to take a more cautious approach to invest in space.