Bitcoin miners halt sales as BTC gains 20% since hash ribbon ‘buy’ signal

Key points:

• Bitcoin miners have stopped selling their BTC in what may signal the end of a lengthy distribution streak.

• Over the past month, miner wallet balances have increased by around 2,700 BTC.

• Hash Ribbons data shows good times continuing for both miners and BTC price strength.

Bitcoin (BTC) accumulation by miners is back as network participants swap selling for hodling at $75,000 lows.

Data from onchain analytics firm Glassnode shows that miners are now actively adding to their BTC reserves.

Bitcoin hitting multimonth lows in April sparked a sea change in miner behavior, with a lengthy selling streak reversing into significant accumulation.

Glassnode shows that shortly after BTC/USD bottomed just below $75,000, the balance in miner wallets itself found a floor, only to then start increasing along with price.

Miner wallets held 1,794,622 BTC on April 12, while as of May 13, they had reached 1,797,330 BTC — an increase of 2,708 BTC or 0.15%.

While minimal in terms of total miner holdings, the turnaround is conspicuous as it follows a run of selling that initially gained momentum in late 2023. This, in turn, has led to optimism over the BTC price trajectory. 

“Extremely bullish for Bitcoin!” trader and investor Mister Crypto summarized in a reaction on X, referencing similar data from onchain analytics platform CryptoQuant.

Miners have stopped selling.

Extremely bullish for Bitcoin! pic.twitter.com/bLuCM5GMgL

Earlier, Cointelegraph reported on decreasing miner sell-side pressure helping contribute to price trend, with institutional buy volumes dwarfing the amount of mined BTC per day.

A classic metric covering miner behavior continues to display classic performance since its latest “buy” signal.

Related: Bitcoin illiquid supply hits 14M BTC as hodlers set bull market record

Hash Ribbons, created by quantitative Bitcoin and digital asset fund Capriole Investments, uses two moving averages of hashrate to delineate periods of “capitulation” among miners.

Since offering its last market entry tip in late March, BTC/USD has gained around 20%.

“The hash ribbons are still flashing a buy signal here,” Mister Crypto commented in a post on the phenomenon this week, predicting BTC price to “go much higher in May.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.