Bitcoin Miners Liquidate $27M as Price Tests $87K Resistance

Bitcoin miners have recently liquidated over $27 million in profits as the price of Bitcoin (BTC) hovers around $83,400, testing key resistance levels. This significant selling activity comes at a critical juncture for Bitcoin, as it navigates through a period of heightened market volatility.

Data from CryptoQuant indicates that early Bitcoin miners have realized profits totaling over $27.2 million. This selling spree has intensified following Bitcoin’s retreat from its highs above $90,000. On-chain metrics reveal that miners have been making substantial deposits to exchanges since the bull rally began in late 2024, as evidenced by the positive values registered by the Bitcoin Miner to Exchange Flow metric.

The pattern suggests that miners initially began selling to take profits as prices rose. Even as the bullish momentum has waned and BTC’s price has declined, miner deposits to exchanges have continued unabated. This trend is confirmed by Glassnode’s miner net position change chart, which shows that outflows are currently exceeding inflows. This indicates that miners are reducing their holdings rather than accumulating more BTC.

Ask Aime: "Will Bitcoin's recent liquidation of $27 million in profits drive a price surge or further losses?"

Mining operations incur constant running costs, primarily in the form of electricity bills. These expenses often necessitate that miners sell portions of their Bitcoin holdings regularly. Typically, this routine selling is not large enough to significantly impact Bitcoin’s price, as the market can usually absorb these sales without major disruption. However, when miner selling reaches higher levels, as is currently the case, it can potentially introduce short-term volatility into the market.

Despite the current selling phase, miners still hold substantial amounts of Bitcoin. The rate at which their holdings are declining might signal their outlook on near-term price movements. Bitcoin was trading around $83,289 at the time of reporting. The cryptocurrency faces immediate support at $82,500, with a key resistance level at $87,000. Technical indicators show the 50-day moving average positioned at $87,400, while the 200-day moving average sits near $95,916, representing longer-term resistance.

These levels serve as critical barriers that Bitcoin needs to overcome to regain bullish momentum. A decisive move above $87,000 could trigger renewed upward movement. Conversely, if Bitcoin breaks below the $82,500 support level, it might open the door to further declines, potentially pushing prices toward the $80,000 mark. The next few days will be crucial in determining if Bitcoin can absorb the miner selling pressure. If miners continue liquidating at the current pace, Bitcoin may struggle to break through key resistance levels.

A shift in miner behavior, such as reduced selling or a return to accumulation, could provide support for Bitcoin to resume its upward trajectory. Until then, the market will closely watch how Bitcoin responds to this elevated selling pressure. At the time of writing, Bitcoin was trading at approximately $83,400, up almost 6% over the past seven days despite the ongoing miner selling activity.