There have been some off-chain movements recently, with a significant volume of Bitcoin being sold.
- Bitcoin miners sold over $83 million in BTC recently. BTC has dropped to the $67,000 price level.
Bitcoin [BTC] has experienced declines over the past few days, with the most notable drop occurring on 11th June. In response to this decline, miners have been selling off their holdings to take some profits.
However, these sales are not being reflected on the exchanges. Despite these circumstances, the open interest continues to maintain a respectable volume.
OTC sales deplete the Bitcoin miner reserve
An analysis of key Bitcoin miner metrics revealed a decline in miner holdings. The miner reserve, while maintaining a volume of around 1.8 million, has experienced slight declines.
However, tracking the miner outflow showed a decrease, indicating that the volume being sent to exchanges from miner wallets has declined.
The metrics may be confusing at first because the flow of BTC from miner wallets is not visible, yet the reserve has seen declines.
However, the situation becomes clearer when analyzing Over the Counter (OTC) sales.
Source: CryptoQuant
An analysis of BTC Miner OTC sales revealed that some major mining companies have been selling off their holdings. According to a chart on CryptoQuant, there was recently the largest OTC sale since late March, with around 1,200 BTC sold.
This is a sign of miner capitulation, indicating that miners are selling their BTC holdings, potentially due to financial pressures or to lock in profits amidst market declines.
These types of transactions do not immediately impact exchange volumes but still reduce the overall reserve.
How has BTC trended amidst sell-offs
An analysis of Bitcoin on a daily time frame chart showed a negative trend over the last seven days. AMBCrypto’s analysis of its price trend indicated that between the 6th and 7th of June, Bitcoin’s price dropped from the $70,000 range to around $68,000.
However, BTC saw another major decline on 11th June, taking its price lower. Analysis of the chart showed that it declined by over 3%, bringing its price down to the $67,000 range.
At this rate, Bitcoin was moving dangerously close to its short moving average (yellow line), which has served as support at around the $65,000 price range.
Source: TradingView
As of this writing, BTC was trading at around $67,400, with a slight attempt at an uptrend.
Analysis of its Relative Strength Index (RSI) showed that it is now below the neutral line, with the RSI at around 47. This indicates that BTC is currently in a bear trend.
Bitcoin still getting lots of interests
An analysis of another key metric revealed that despite the miner sell-off and the price decline, Bitcoin continues to see a high volume of interest.
This suggests that, even in a bear trend, there remains significant engagement and potential optimism in the market.
A look at the Open Interest chart from Coinglass showed it was around $34 billion as of this writing.
Analysis of the chart indicated that its all-time high (ATH) was around $39 billion, a level achieved in March when the BTC price was over $70,000.
This suggests that cash inflow has not stopped, and many traders are buying in due to the price drop.
Source: Coinglass
Additionally, comparing the current open interest (OI) to its all-time high (ATH) shows that there has been no significant loss of positive sentiment around the price of BTC.
Despite the recent declines, traders remain engaged and optimistic about Bitcoin’s potential.
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