Bitcoin
Bitcoin Q3 Rally Possible as Miner Liquidation Ends, Says Quant — TradingView News
A quant expert has explained how a rally could be possible for Bitcoin in Q3 2024 as selling pressure from miners has disappeared.
Bitcoin Miners Appear to Have Stopped Selling
In a CryptoQuant Quicktake post, an analyst talked about how concerns about miner selling pressure have been resolved recently. There are two on-chain indicators of focus here.
The first of these is “Miner to Exchange Transactions”, which, as the name suggests, tracks the total number of transactions going from miner-related wallets to exchange-affiliated wallets.
When this metric is high, it means that miners are making a high number of deposits to exchanges. Typically, the main reason why these chain validators might transfer their coins to these centralized entities is for sale-related purposes.
As such, this type of trend can have potential bearish consequences for the market. Low values of the indicator, on the other hand, can be neutral or bullish for the asset, as they imply that miners are possibly not participating in any selling through these platforms.
Now, here is a chart showing the trend of Bitcoin mining transactions to exchange over the past year:
BTC News
As visible in the chart above, Bitcoin Miner to Exchange transactions were on the rise between late 2023 and late April this year. This upward trend in the metric occurred while the price of the cryptocurrency itself was experiencing a rally.
It appears that miners saw the rally as an exit opportunity as they gradually increased their selling pressure as the price approached a new all-time high (ATH).
It is also apparent, however, that since the peak in April, the indicator’s value has seen a very rapid decline. Thus, it is possible that miners’ appetite to sell has cooled.
Exchanges aren’t the only way miners sell, however, as over-the-counter (OTC) desks are also a popular option among these chain validators. Below is a chart showing the trend in OTC Desk Total Balance, which is an indicator that tracks the non-exchange, non-mining wallets that miners send to when they want to sell.
From the chart, it is visible that the Total OTC Desk Balance was at relatively high levels a little earlier, suggesting that these entities, which are likely OTC desks, were holding a large number of coins.
In recent days, however, the indicator has seen a sharp decline, which could indicate that the coins that had accumulated in these wallets have now found a buyer.
Thus, it appears that miners have eased their selling pressure on exchanges and the coins they were waiting to sell on OTC desks have also been absorbed. “Sufficient conditions have been created to continue the upward rally again in Q3 2024,” the quant notes.
BTC Price
Bitcoin has shown some recovery over the past 24 hours as the asset’s price has now recovered above the $63,700 mark.