Key Bitcoin price metric signals BTC may be near a local top

Key Bitcoin price metric signals BTC may be near a local top

Bitcoin miners are selling at a level unseen since July 2019 when BTC price topped out at $14,000.

According to data from CryptoQuant, miners appear to be selling large amounts of Bitcoin (BTC). Historically, heightened selling pressure from miners marked a local top and led to sharp, prolonged corrections.

BTC/USDT 1-hour chart. Source: TradingView.comWhy are Bitcoin miners selling?

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In May 2020, on-chain analyst Willy Woo said that there would be two sources of unmatched selling pressure in the market after the block reward halving.

Woo pinpointed Bitcoin miners and cryptocurrency exchanges selling the fees they gain in the form of crypto assets as the sources of selling pressure. He said:

“There’s only two unmatched sell pressures on the market. (1) Miners who dilute the supply and sell onto the market, this is the hidden tax via monetary inflation. And (2) the exchanges who tax the traders and sell onto the market.”

Hence, in the short to medium term, miners could continue

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