Bitcoin Miners Dump $55 Million Worth of $BTC Amid Price Drop to Key Support Level
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Bitcoin ($BTC) miners have sold some 2,000 coins worth around $55 million over a single 24-hour period, at a time in which cryptocurrency investors are focusing on a key support level that the cryptocurrency has to bounce back from before dipping further.
According to popular cryptocurrency analyst Ali Martinez, Bitcoin miner reserves have dropped by more than 2,000 BTC over the past 24-hour period, suggesting miners – who help secure the blockchain and earn block rewards in return – have dumped $55 million worth of Bitcoin on the market.
#Bitcoin Miner Reserves dropped by more than 2,000 #BTC over the last 24 hours, which suggests miners have sold around $54 million worth of $BTC. pic.twitter.com/wLPYJY7zU2
— Ali (@ali_charts) May 18, 2023
The BTC sales came at a time in which the price of the flagship cryptocurrency dropped from around $29,000 to a low above the $26,500 mark, from which it currently appears to be recovering.
At the time of writing, BTC is trading at $26,800 after bouncing back from the key support level it has at $26,490, where blockchain data shows a total of 845,000 addresses have deployed a volume of over 474,000 BTC.
A break below that key level, Ali Martinez suggested, could trigger a correction down to the $24,1000 or $23,190 mark, based on blockchain data shared from IntoTheBlock. When it comes to its upward momentum, he said BTC faces stiff resistance between the $28,180 and $28,990 levels, where 1.24 million addresses have bought 973,220 BTC.
#Bitcoin faces stiff resistance ahead, especially between $28,180 and $28,990, where 1.24 million addresses bought 973,220 $BTC.
On the flip side, the most important support level is $26,490. Failing to hold above it could trigger a steeper correction to $24,100 or $23,190. pic.twitter.com/qKo8sRcYOP
— Ali (@ali_charts) May 15, 2023
As CryptoGlobe reported, blockchain data has also shown that there has recently been a surge in acquisitions by the so-called “whales” of the cryptocurrency world. These deep-pocketed entities, known for holding between 1,000 and 10,000 Bitcoin, have amassed an additional $2.32 billion worth of the crypto behemoth in a period just over a month.
A similar accumulation trend from BTC whales earlier this year, according to Santiment, was followed by a 34% rise in the price of the digital currency. Whales accumulating tokens can both signal confidence to the market and help the cryptocurrency’s price rise by helping reduce the supply available on exchanges.
Bitcoin adoption has kept on rising over the past few months with the rise of the total number of unique addresses holding at least one BTC reaching a new high above the one million mark.
The new record was set on May 12 and shows there’s growing interest in the flagship cryptocurrency as accumulation is ongoing. At the time of writing the number of addresses holding one whole BTC, often referred to as “wholecoiner” addresses, has grown to 1,000,527. On February 2, the figure crossed the 800,000 mark.