Crypto Industry News:
Data shows that bitcoin miners dropped around 7,700 BTC in the last week, resulting in a nearly 10% drop in their reserves over the period.
According to Glassnode's latest weekly report, the latest drop in mining reserves is the sharpest since September 2018.
"Miner Balance" is an indicator that measures the total amount of Bitcoin currently held in the wallets of all miners. When the value of this indicator increases, it means that miners are just transferring resources to their wallets. Such a trend, if prolonged, may indicate accumulation from the chain validators and therefore may turn out to be bullish for the price.
On the other hand, the drop in the rate suggests that miners are now withdrawing their BTC from their reserves. In general, miners transfer their funds for selling purposes, so this kind of trend can be bearish for crypto.
Over the last week, the value of the index fell by 7.76 thousand. BTC, which is a total decrease of about 9.5%. According to this indicator, miners currently spend 6.45 thousand. BTC per month, which is more than during any sale in the last few years.
In fact, the current monthly decline in miners' reserves is the sharpest since September 2018. Miners were under tremendous pressure before the latest crash as a long and deep bear market steadily reduced their profits.
Technical Market Outlook:
The BTC/USD pair has bounced from the swing lows located at the level of $15,555 and tested the technical support seen at $17,600. Moreover, the bulls retraced 38% of the whole sell-off and hit the level of $18,135 before the pull-back towards the sell-off lows was made. The market conditions on the H4 time frame chart are still oversold, however, no significant breakout has been made yet as the market keeps trading up and down in a whipsaw mode. The nearest technical resistance zone is seen at $17,600, $18,150 and $18,220. There is no indication of the down trend to terminate or reverse just yet as the market keeps trading in a relatively narrow range.
Weekly Pivot Points:
WR3 - $18,079
WR2 - $17,175
WR1 - $16,785
Weekly Pivot - $16,272
WS1 - $15,888
WS2 - $15,369
WS3 - $14,456
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames continues without any indication of a possible trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support at the psychological level of $20,000 had been violated, the new swing low was made at $15,555 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout in the long term.
