With the crypto space witnessing some relief from the bearish trend, the Bitcoin miners quickly started accumulating. This amplified the price smashed above $21,000 and also reached close to $21,500. However, the price is facing a minor pullback at the moment which is considered a minor correction, but some on-chain data shows that the miners may be preparing to dump which may hinder the progress of the rally ahead.
The Bitcoin hash rate rebounded to rise toward the highs, and the miner’s reserve also began to swell. It was believed that they might have started to accumulate after continuously selling them for more than 2 months. However, a recent discovery by a popular on-chain platform crypto quant may again push the markets into deep FUD.
As per the platform, the current pullback is led by the miners who are trying to mount selling pressure on the market. The indicator, Miner’s Position Index(MPI) which measures the ratio between the miner outflows and the 365-day moving average, shot up heavily.
The indicator when spikes heavily indicate that the miners are selling at a higher degree than usual. The value that spiked hit the value of about 4, the highest level since April 2022. A spike in the levels usually invites a decrease in the value of the crypto which has been prominent since the early trading hours.
At the time of writing, the Bitcoin (BTC) price was trading at $20,858 with a market capitalization of $401 billion. The price after recording a 24hr jump of nearly 5%, slides down to less than a percent at the moment, indicating the strengthening of the bearish hold. Therefore, if the data turns out to be true, a significant price plunge may be fast approaching.