Bitcoin (BTC) Miner reserves have seen a steady decline over the past year, which is quite concerning. However, Bitcoin has seen multiple price increases during this period, even crossing the $100,000 price zone. CryptoQuant cryptoavails analyst provided some insight into this divergent trend, pinpointing the driving force behind the current bullish market.

Bitcoin miners offloaded 37 million BTC amid a selling frenzy

In Quick post on X, cryptoavails indicates that the resources of Bitcoin miners have been decreasing since the second half of 2023, falling from 1.808 million BTC to the current value of 1.808 million BTC.

Generally, when miners’ reserves raise, it indicates accumulation, which is interpreted as a bullish signal. On the other hand, a decline in miners’ shares due to high operating costs or profit-taking poses significant selling pressure that may trigger bearish sentiment.

However, with the ongoing workload on Bitcoin miners, cryptoavails highlights that the leading cryptocurrency has seen a significant periodic price raise, rising to its current value of around $103,000. The cryptocurrency analyst explains that this unusual behavior indicates that other market participants, i.e. retail and institutional investors, have shown mighty demand to alleviate all the selling pressure from miners.

For example, the Bitcoin Spot ETFs launched in January 2024 have proven to be monumental in terms of increasing BTC prices with each surge in inflows as prices rise. According to data from SoSoValue, Bitcoin Spot ETFs currently boast total net assets of $114.82 billion despite being on the market for just over a year, representing huge institutional demand for the leading cryptocurrency.

Interestingly, cryptoavails notes that a continued decline in mining reserves would ultimately lead to reduced selling pressure, likely due to fewer BTCs available for sale, thus contributing to greater potential for price increases in the future.

Will BTC enter consolidation?

In other news, popular market analyst Rekt Capital has postulated the price movement necessary for Bitcoin to maintain its current growth and avoid another consolidation. At the time of publication, the price of the largest cryptocurrency is $103,114 after increasing by 2.10% in the last 24 hours. Meanwhile, its daily trading volume increased by 16.95% and is valued at $65.8 billion.

The capital of Recht states BTC needs to see a daily close above its final resistance at $106,000, followed by a retest to confirm a price breakout and an upcoming novel all-time high. However, if BTC fails to clear the identified resistance zone, the asset is expected to trade between $101,000 and $106,000 in the brief term, thus creating a consolidation zone.