Bitcoin Miners Offload Significant Amounts – Will BTC Prices Hit $83K Again Soon?

Bitcoin [BTC] recently faced a downward trend after being rejected at the $93,000 mark, dropping to a low of $83,000 before recovering slightly. As of now, BTC is trading at $86,564, reflecting a daily increase of 0.7% but a weekly decrease of 1.06%. In this volatile market environment, several large holders and miners are starting to close their positions.

Key Takeaways

Bitcoin has faced downward pressure, recently trading at $86,564.
A Satoshi-era wallet moved 50 BTC, raising concerns about potential market impact.
Miner revenues have dropped significantly, leading to increased selling activity.
The overall market indicators suggest a bearish trend, which may lead BTC to revisit the $83K level unless a positive momentum shift occurs.

A Satoshi-Era Bitcoin Miner Moves 50 BTC Worth $4mln: What About Price?

Movement of Satoshi-Era Bitcoin Miner

According to Onchain Lens, a wallet from the Satoshi era recently moved 50 BTC, valued at about $4.33 million, into five different wallets. This wallet had been inactive for over fifteen years.

Satoshi era miner

When long-dormant wallets begin to move, it often indicates one of two things. The most frequent interpretation is that the owner plans to sell and realize gains. If this BTC is sold, it could further burden an already pressured market, though the overall amount moved is relatively small.

The second reason for such transactions could be the reorganization or enhancement of security for these wallets, suggesting an effort to improve security measures.

Miners Selling Amid Declining Revenues

As Bitcoin continues to struggle in a prolonged decline, miner revenues have fallen sharply. The Puell Multiple, as reported by Checkonchain, dropped to 0.7, indicating that miner revenues are approximately 30% below their long-term average. This drop is forcing miners to look for alternative revenue streams to cover their operational expenses.

Bitcoin Puell Multiple

Consequently, many miners are opting for aggressive selling strategies. On December 1st, as BTC approached the $83K mark, miners sold about 8,300 BTC. Such increased selling activity among miners usually indicates significant financial strain, particularly when BTC prices are declining.

Bitcoin miner outflow

Historically, enhanced selling from miners has foreshadowed further price drops, especially when there is low liquidity in the market.

BTC's Future: Rebound or Continued Decline?

As reported by AMBCrypto, Bitcoin is currently under substantial pressure from various market participants, including miners. This has resulted in BTC falling below the 20, 50, 100, and 200-day moving averages, which is an indicator of strong bearish momentum.

At the same time, the Directional Movement Index (DMI) has largely shown negative values, indicating ongoing downward momentum.

BTC DMI SMI

Given these market factors, BTC is at risk of further losses, with the potential to return to the $83K support level. To regain upward momentum and signal a possible trend reversal, Bitcoin needs to achieve a daily close above its EMA20 at $91,582. Achieving this could encourage bullish traders to target EMA50 at $98,725.

Conclusion

With the current market conditions and miner sell-offs, the Bitcoin landscape remains precarious. Investors should remain cautious as developments unfold and watch closely for key price levels and movements.