Analyzing Bitcoin mining companies’ behavior to assess sell pressure

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Analyzing Bitcoin [BTC] mining companies' behavior to assess sell pressure

Retail investors stay optimistic.

Bitcoin miners have long been subjected to the cryptocurrency market’s volatility. This has resulted in instances where miners have liquidated their holdings.Read Bitcoin’s Price PredictionHowever, public mining companies were observed to be consistent in their behavior. According to Blockridge’s data, all mining companies sold 100% of theirHowever, for the first time in over six months, the liquidation ratio decreased to below 100% in March, subsequently dropping further to 95% in April.

Talking about mining pools, Foundry Pool, one of the largest mining pools in the sector, was observed to be having a successful run in terms of mining blocks. According to btc.com’s data, over the last six months, the pool managed to mine 8,060 blocks.The mining companies and pools have just started to hold onto their BTC, and the retail investors show no sign of stopping their accumulation.

Glassnode’s data indicated that the number of addresses holding more than 0.1 coins has reached an all-time high.At the time of writing, the selling pressure on these investors was relatively low. According to data provided by Santiment, the 30-day MVRV ratio of BTC had turned negative. This indicated that most short-term holders were not profitable and did not have an incentive to sell.On the other hand, the Long/Short difference of BTC continued to increase, indicating that the majority of the addresses on the network were long-term holders of Bitcoin.Despite these factors, short positions on the network continued to increase. Consider the chart below, for instance.

 

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Bitcoin [BTC]: To sink or swim, investors unsure of market’s next directionBTC's Spent Output Profit Ratio (SOPR) indicator has remained sideways, suggesting a possible sell-off scenario where short-term holders may be selling their coins.
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