Bitcoin’s price has failed to overcome the critical resistance level at $25,000 and has since retraced to where it currently trades at $21,500.
Since August 15th, the cryptocurrency has lost about 15% of its dollar value and has closed only four days in the green. Now, data suggests that there might be more pain to come, at least in the short term.
The percentage change (%) in the positions of BTC miners indicates that miners have again moved to reduce their reserves since August 08,2022, and now their net balance is in the negative zone.
You may notice that in previous times when miners’ balance was reduced, BTC tended to decline to free fall or range decline trading. The current situation requires closer attention to the miner flows.
When the ratio of this period fell to 4% or below the yellow dotted line (please see chart below), the bottom in the cycle was reached.
2011: 3.2%
2015: 3.2%, 3.4%
2019: 3.7%
2022 (Current): 3.8%