Bitcoin (BTC) may be approaching a local top, according to CryptoQuant CEO Ki Young Ju, who based his analysis on miners selling the cryptocurrency.
What Happened: Ki pointed to a metric called Minersâ€™ Position Index (MPI), which is the ratio of all BTC leaving miners to the coinâ€™s one-year moving average.Â
A value above 2 indicates that most miners are selling.Â
Miner Position Index looks enough to make a local top. They’re selling $BTC.
I’m going to punt a small short to scalp $BTC in this short-term bearish market.
â€” Ki Young Ju ì£¼ê¸°ì˜� (@ki_young_ju) January 10, 2021
The MPI hit 4.52 on Jan. 7, as Bitcoin approached $40,000 levels, as per CryptoQuant data.
Why It Matters: The BTC sale by miners is diametrically opposite to institutional investors who made record Bitcoin purchases as the apex cryptocurrency crossed $30,000 levels, also noted by Ki last week.
Willy Woo, an on-chain analyst, said in May that there are two factors that add selling pressure in the market after the block reward halving â€” Miners who dilute supply and sell on to the market and exchanges who tax traders and sell onto the market, Cointelegraph reported.
Miners have been beneficiaries of the 300% spike in Bitcoin prices in 2020 as they mopped up $692 million in revenue in December alone, a 33% jump over the preceding month, noted CoinDesk.
Price Action: Bitcoin traded 10.62% lower at $36,964.10 at press time. Grayscale Bitcoin Trust (OTC: GBTC) closed 1.22% lower at $44.42 on Friday.
Â© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The post (GBTC), (ETHE) – Key Metric Indicates Bitcoin Rally Might Be Over For The Time-Being: What You Need To Know appeared first on TechFans.