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Does Negative Miner Net Position Direct a Bullish Trend for BTC?

Published 11/07/2022, 08:15 AM
Updated 11/07/2022, 08:30 AM
© Reuters.  Does Negative Miner Net Position Direct a Bullish Trend for BTC?
BTC/USD
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  • BTC’s miner net position had been showing a negative trend for the past few months.
  • The traders sell off their coins at an aggressive rate, which hadn’t been seen since 2021.
  • The negative trend in the net position marks a possibility for a bullish market.

The miner net position of the leading crypto, Bitcoin, had been exhibiting a deeply negative value for the past three months. The BTC coins were sold at an aggressive rate which hadn’t been seen since 2021, seemingly in an effort to cover the liabilities during the crypto winter.

BTC Miner Net Position Change (Source: Glassnode)

Notably, the negative value of the metric indicates that the traders have lost a large number of coins recently, in an attempt to sell the coins. The tendency of the traders to sell the coins could be seen as a sign of an underperforming market.

Though negative values of the miner net position occur during bearish periods, the negative trend usually leads to a bullish period. So far, since 2020, Bitcoin had five negative miner net positions; after four of the five periods, BTC saw a hike in its price.

Interestingly, the only period in which BTC accumulation occurred along with the bullish trend is after the fall of the market during the COVID days of May 2020, while BTC reached its all-time high in November 2021.

Significantly, BTC price had been stagnant for the past few months, with low trading volume and volatility. BTC had been trading between $19,000 and $20,000 for many weeks now. At press time, BTC is trading at $20,749.21, with 2.4% dip in the past 24 hours.

Worth noting, while analyzing the metrics of BTC, there had been consistent transactions of the coin in 2022, whereas volume remained without any significant surge.

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