Key Bitcoin Miner Metric Points to Potential Price Dip Ahead
A key bitcoin activity metric shows that miners have sent considerable amounts of BTC to cryptocurrency exchanges over the past several days, signaling a potential price dip ahead.
According to data compiled by on-chain analytics firm Glassnode, bitcoin miners have been sending substantial amounts of BTC to exchanges, indicating a possible selloff ahead.
In a tweet published November 9, Glassnode said miner to exchange flow had increased “significantly” over the past 24 hours, up 271.6 percent to 25.101 BTC.
The move could indicate a potential price dip ahead for bitcoin, as miners begin taking advantage of the price rally to sell off large amounts of accumulated BTC.
However, Glassnode’s latest edition of Week On-Chain newsletter predicts bitcoin has more “room to grow” before reaching the next top.
According to the report, bitcoin grew 13.2 percent last week, closing on a two-year high at $15,500. Glassnode found that bitcoin’s overall market fundamentals increased, with liquidity showing the most dramatic change.
The report reads,
In the wake of the US election, the stock market has begun to rally – but BTC’s growth has significantly outpaced this, putting more weight behind the possibility of a decoupling that we have been seeing over the past few weeks.
Glassnode continues, saying bitcoin’s decoupling from stocks could lead to even further growth.