Bitcoin Miners Mount Selling Pressure on BTC as Miners Migrate
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Reports show that Bitcoin (BTC) miners have boosted their selling activities as the mining industry tries to steady itself from recent blows from China. While we witness the largest crypto mining migration in history, BTC mining hash power has fallen to record lows.
According to Glassnode’s latest on-chain weekly analysis, two primary factors are causing the spike in selling pressure from Bitcoin miners. The first is the drastic plummet in mining revenue, while the second is the surge in logistical expense triggered by the ongoing crypto mining migration.
The analytics company revealed that the mining market has suffered a massive drop of about 65% in revenues compared to April 2021. At press time, the average daily mining revenue stands at roughly $20 million. Glassnode explained in its report that:
“Over this same period, mining difficulty has only increased by only 23.6%. The mismatch between revenue and difficulty is primarily a result of the global shortage in semi-conductors that has limited the ability of miners to expand their operations. In practice, this means that mining Bitcoin has been exceptionally profitable throughout 2021 and that some mining hardware that would otherwise be obsolete remains profitable. This means fewer coins need to [get] sold to cover costs, and miner treasury reserves can [get] built.”
Key Bitcoin Levels to Watch — June 29
While BTC miners continue to mount selling pressure on Bitcoin, the benchmark cryptocurrency appears to be holding the fort as bulls keep it near the $35k mark. Bulls have prevented a fall away from the $35,000 level since its rebound from the $30,000 level last Saturday.
That said, BTC has to stay around this level over the coming hours or risk falling below the $33,750 support. A successful defense of the $35k mark should open the way to the next resistance target; $36,000.
Meanwhile, our resistance levels are at $35,000, $36,000, and $37,000, and our key support levels are at $33,750, $33,000, and $32,000.
Total Market Capitalization: $1.42 trillion
Bitcoin Market Capitalization: $661.5 billion
Bitcoin Dominance: 46.6%
Market Rank: #1
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