Bitcoin Bearish Signal: Miners Move 4.4k BTC to Binance
On-chain data shows that Bitcoin miners have moved around 4.4k BTC to Binance, which could prove bearish for the price of the crypto.
Bitcoin Miner To Exchange Flow has increased over the last day
As pointed out by an analyst in a CryptoQuant post, the recent transaction appears to have come from the Poolin mining pool.
The relevant indicator here is “miner to exchange flow”, which measures the total amount of coins moving from the wallets of all miners to all exchanges.
When the value of this metric is high, it means that miners are sending a large number of coins to centralized exchanges right now.
Since miners usually transfer BTC to exchanges for selling purposes, this kind of trend could be a sign of dumping from these chain validators. And thus, it can lead to a bearish outcome for the crypto price.
On the other hand, low values of the indicator suggest that these chain validators are not sending that much BTC to exchanges at the moment.
Such a trend could indicate that miners are not putting as much selling pressure on the market right now, and could therefore have either a neutral or bullish impact on the value of the coin, depending on other conditions.
Now, here’s a chart showing the trend in Bitcoin miner to exchange flows over the past few months:
The value of the metric seems to have been quite high recently | Source: CryptoQuant
As you can see in the above graph, the Bitcoin miner to exchange flow observed a big spike during the last day.
The transaction, which totaled around 4.4k BTC, came from mining wallets associated with the mining pool Poolin, and was sent to the crypto exchange Binance.
During the last few months, there have also been three other cases where the miners have sent coins from the reserve to exchanges. Each of these also happened to coincide with declines in the crypto price.
If the last miner to exchange flow actually happened with the intention of selling, this peak could be bearish for the value of the crypto.
BTC price
At the time of writing, Bitcoin’s price is hovering around $20.3k, down 2% in the last seven days. Over the past month, the crypto has lost 13% in value.
The chart below shows the trend in the price of the coin over the last five days.
Looks like the value of the crypto has been moving sideways during the past few days | Source: BTCUSD on TradingView
Featured image from Marc-Olivier Jodoin on Unsplash.com, charts from TradingView.com, CryptoQuant.com
