Bitcoin Miners Show Confidence in BTC Despite Price Drop, Sell Pressure High

Bitcoin [BTC] off late has faced multiple price corrections as its price continues to trade under the $57k mark. This bearish price action would

As Bitcoin's (CRYPTO: BTC) price continues to trade below the $57,000 mark, multiple price corrections have occurred. This bearish price action would directly affect market sentiment.

Hence, to understand how the Bitcoin mining sector was affected due to the price drop, AMBCrypto took a closer look.

Bitcoin miners' state after price correctionsCoinMarketCap's data revealed that BTC's price declined by more than 10% in the last seven days. In the last 24 hours alone, the coin was down by over 1.3%.

At the time of writing, BTC was trading at $56,651.71 with a market capitalization of over $1.12 trillion. A drop in price often results in less profitability for miners.

Furthermore, BTC recently underwent its fourth halving, which had already reduced miners' rewards.

AMBCrypto's observation of BitInfoChart's data revealed that the BTC mining sector's profitability had indeed reduced substantially over the last week. At the time of writing, Bitcoin miners' profitability stood at 0.0432 USD per day.

However, it was interesting to note that BTC's hashrate remained relatively stable throughout the last week. In fact, the metric spiked on the 7th of July and reached 691.8 Eh/s.

Generally, a rise in the metric indicates an increase in computational power, suggesting that more Bitcoin miners entered the network. Usually, when hashrate rises, the blockchain's mining difficulty also follows a similar trend.

However, on this occasion, things were different. Our observation of CoinWarz's data revealed that BTC's mining difficulty dropped on the 5th of July. At the time of writing, Bitcoin mining difficulty stood at 79.50T.

Are Bitcoin miners selling BTC?Even though there was an increase in hashrate, miners' profitability did drop. Hence, AMBCrypto took a closer look at how miners were behaving after the coin's price plunged.

AMBCrypto's analysis of Glassnode's data revealed that BTC's miners' net position change was in the negative zone throughout the last week. This indicated that selling pressure on BTC from miners was high.

However, it was interesting to note that Bitcoin miners' balance registered a sharp uptick on the 8th of July. This clearly indicated a rise in confidence among BTC miners, as they expected the coin's price to rise in the coming days.

To see whether this rise in miners' balance had a positive impact on BTC's price, we checked its daily chart. We found that both its Money Flow Index (MFI) and Chaikin Money Floe (CMF) registered upticks, hinting at a price rise soon.

Nonetheless, the technical indicator displayed a bearish advantage in the market.

The above is the detailed content of Bitcoin Miners Show Confidence in BTC Despite Price Drop, Sell Pressure High. For more information, please follow other related articles on the PHP Chinese website!