Bitcoin’s (BTC) price hit a new monthly peak of $27,500 on September 19 after the US Federal Reserve officially announced a rate pause. On-chain data examines how the Bitcoin traders could react to the Miners’ decision rapidly offload BTC worth $93 million after the recent Fed Meeting.
Bitcoin (BTC) miners capitalized on the recent price rally to book some profit after the Fed Meeting on Sept 20. As Bitcoin price retraced below $27,000, investors in the BTC derivatives markets look set to switch their trading strategy
Bitcoin Miners Capitalized on the Price Rally to Sell 3,495 BTC
Bitcoin price reclaimed $27,500 for the first time in September after the Fed announced a rate pause on Tuesday. On-chain data reveals that Bitcoin miners have taken advantage of that price rally to book some profit
According to data from CryptoQuant, the Bitcoin Miners held 1,844,854 BTC in their reserves when BTC crossed $27,000 on September 19. But barely 72 hours later, they have sold 3,495 BTC, bringing down their cumulative balances to 1,841,350 million BTC.
Miners Reserves tracks the deposit balances in crypto wallet addresses linked to recognized Bitcoin miners and mining pools. When benchmarked to the current market prices of $26,700, the 3,495 BTC decline means the miners have offloaded coins worth $93 million since the Fed meeting.
Notably, the chart above illustrates the miners had been in accumulation mode since the start of the month. They only began to sell once BTC price hit the $27,000 mark. The huge Miner sell-off has thrown the Bitcoin rally off-track, as prices retraced below $26,500 on Friday.
Recent data trends in the Bitcoin derivatives markets suggest this has spun the short-term momentum in the bears’ favor.
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Bearish Traders are Paying Record Fees To Keep Their Short Positions Open.
In response to the miners’ sell-off, the bearish speculative traders are paying record fees to keep their Bitcoin short positions open.
BTC Funding rates dropped into negative territory to hit -0.002 on September 22. Notably, this is the highest negative swing in Bitcoin funding rates since August 20, according to CryptoQuant.
Negative Funding Rates in cryptocurrency perpetual swaps or futures markets indicate that inverse traders (those betting on Bitcoin price decreases) are paying a fee to Long position traders.
Negative Funding Rates imply Short traders’ growing confidence that the Bitcoin price will likely remain bearish in the short term. If it persists, it may exacerbate the current downward momentum.
However, other market factors, like the miners’ outflow, could also play a significant role in the coming days.
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BTC Price: Possible Reversal Below $26,000 Before Rebound
Despite the overall positive sentiment in the broader crypto markets, the Bitcoin miners’ selling frenzy and bears dominating the derivative markets could force a downswing below $26,000 in the coming days.
The In/Out of Money Around Price data, which depicts the entry price distribution of the current BTC holders, also adds credence to this prediction.
It, however, highlights that the bears will face a considerable obstacle around the $26,200 territory.
As shown below, the 2.39 million BTC holders had bought 718,940 coins at an average price of $26,166. If they defend their long positions, it could trigger a rebound.
But if the bearish miners keep selling, Bitcoin price could eventually wobble below $26,000 as predicted.
On the flipside, the bulls could invalidate that pessimistic Bitcoin price prediction by reclaiming $28,000. However, 2.13 million addresses had bought 1.13 million BTC at the maximum price of $27,370. If the miners keep selling, that resistance level could prove daunting for the bulls.
Although unlikely under the current on-chain circumstances, Bitcoin price could eventually hit $28,000 if that resistance level folds.
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The post Bitcoin Miners Offload $90M in BTC Post-Fed Meeting – What’s Next for the Price? appeared first on BeInCrypto.