Bitcoin (BTC) miners are selling less BTC every day. However, the data indicate that they may start causing a major price correction soon.
Philip Swift, developer of on-chain data source LookIntoBitcoin, shared on March 11. in your message expressed similar concern. The indicator named Puell Multiple, developed by David Puell, points to the period when miners start selling bitcoins in bulk to make a profit.
The indicator, which gives an idea of the most profitable price level for miners, is calculated by dividing the value of “newly” traded BTCs each day by the annual moving average in dollars.
Looking at the historical process, it is revealed that these indicators of Bitcoin price peaks and sales processes overlap. In Swift’s view, the red zone indicating the distress signal, last observed in late 2017, is quite close. He explained as follows:
“Historically, when Puell Multiple, represented by the red line, enters the upper red band, miners understand that they are entering the lucrative process. This coincides with macro peaks observed in the BTC price.
In 2021, the chart is shaped by institutional investment not seen in late 2017. Considering the large-scale purchases from institutions this year, miners’ sales may not pull the market down.
Cole Garner, another analyst, evaluated data from Glassnode, his analytics service on the chain. Major Bitcoin transfers entering the market from mining pools this year caused the Bitcoin price correction. argued:
“This chart reveals that they are doing a pretty good job of the best price OR knowing very well when to sell.”
The researchers claim that they expect more spikes, the potential selling pressure might not be strong enough. As Cointelegraph reported, at worst the $ 46,000 limit is the strongest support since Bitcoin crossed $ 11,000 last year.
According to the Glassnode report, most indicative miners are in the build-up process and $ 50,000 is expected to become a strong support for Bitcoin in the near term.