Bitcoin's $87K Breach: CryptoQuant Warns of Possible Indicators Signaling Potential Reversals
In the past couple of weeks, Bitcoin (BTC) has found itself in deep bearish waters, and it appears the downward spiral isn't slowing down anytime soon. A weekly report from CryptoQuant reveals that despite a slight decrease in daily BTC selling from large investors, the mining community, on the other hand, continues to offload their assets in large quantities.
Miners Selling Their BTC to Stay Afloat
Since late February, Bitcoin whales have been taking steep losses due to the decrease in BTC's price, following their profitable ride above the $100,000 mark in January. While the selling from these investors has slowed down significantly, their daily BTC sales have fallen from 800,000 in late February to approximately 300,000.
However, the struggles of the mining community have intensified. The total BTC balance held by these players has plummeted from 3.537 million to 3.500 million, with their monthly accumulation percentage growth dropping to zero. In fact, the whales are now accumulating BTC at the slowest monthly pace since February, with their monthly accumulation rate falling from 2.7% at the end of March to a mere 0.5% presently.
While Bitcoin's price continues to stagnate, the miners have ramped up their selling pressure to stay afloat. Their outflows surged to 15,000 BTC on April 7, when BTC dipped below $74,000. Commentators note that this was the third-largest daily outflow seen so far in 2025. To make matters worse for miners, the rising Bitcoin network hashrate suggests mining BTC is becoming increasingly difficult and costly.
When coupled with dwindling transaction fees, the average operating margin for miners has plummeted from 53% in late January to 33% today.
CryptoQuant's Bearish Trend Continues
As whales and miners grapple with the changing market dynamics, Bitcoin remains stuck in one of its least bullish phases since November 2022. The Bull Score Model, which measures the bullish percentage of on-chain and market metrics from 0 to 100, is still hovering in the bearish territory. The index remains at 20, indicating that investor sentiment is weak, and the likelihood of a sustained rally in the near term is scarce.
In fact, Bitcoin has managed to break out of its recent consolidation phase and chart a multi-week peak of over $87,500 on Monday morning. However, the ongoing bearish streak seems to have a firmer grip on the world's largest cryptocurrency, with the Bull Score Index experiencing its longest streak of days in bearish territory since September 2022. In recent history, the model has remained below 50 for 58 of the past 60 days, a pattern that was seen during major market corrections in July 2021, January 2022, and June 2022.
All in all, the ongoing selling pressure exerted by miners is a significant contributing factor to the persistent bearish market conditions for Bitcoin.
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- Miners have increased their selling of Bitcoin (BTC) since late February, likely due to the decreased profitability and rising network hashrate, as the total BTC balance held by miners has plummeted.
- The selling pressure from miners continues to affect the market, with their outflows surging to approximately 15,000 BTC on April 7 when BTC dipped below $74,000.
- Despite a slight decrease in daily BTC selling from large investors, the Bear Score Model indicates that Bitcoin remains in a bearish phase, with a weak investor sentiment and a low likelihood of a sustained rally in the near term.
- The Bitcoin (BTC) market has experienced major corrections in the past, such as in July 2021, January 2022, and June 2022, with the Bull Score Index remaining below 50 for 58 of the past 60 days.
- In February 2022, the average operating margin for miners dropped from 53% to 33%, a substantial decrease that reflects the ongoing challenging market conditions for Bitcoin finance and technology.
