Bitcoin

Time

<ul>
 <li>Bitcoin surged by more than 7% as its price went above $46,000.</li>
 <li style="font-weight: 400;">On-chain metrics revealed high sell pressure on BTC.&nbsp;</li>
</ul>
<a href="https://ambcrypto.com/search/bitcoin" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin [BTC]</a> finally went above a crucial level, spurring hopes for a renewed bull rally. But just before that happened, BTC’s mining industry showed distrust in the king coin as a major sell-off took place. 
Will this event hurt BTC and put its bull rally to an end?
<h4>Bitcoin jumps above $46,000</h4>
According to <a href="https://coinmarketcap.com/currencies/bitcoin/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">CoinMarketCap</a>, in the last 24 hours alone, BTC’s price surged by more than 7%, allowing it to go above $46,000. At the time of writing, it was trading at $46,738.61 with a market capitalization of over $915 billion. 
However, Bitcoin’s mining industry acted differently. AMBCrypto’s look at IntoTheBlock’s data revealed that a major mining pool sold a substantial number of BTC. Notably, F2Pool sold more than 1,000 BTC on the 5th of January 2024. 
Moreover, the overall netflow of <a href="https://ambcrypto.com/will-bitcoin-touch-100000-in-2024/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a> miners registered a downtick in the last week.
<div id="attachment_362732" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/IntoTheBLock-BTC.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362732" decoding="async" class="wp-image-362732 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/IntoTheBLock-BTC.png" alt="" width="1552" height="406" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/IntoTheBLock-BTC.png 1552w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/IntoTheBLock-BTC-300x78.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/IntoTheBLock-BTC-1024x268.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/IntoTheBLock-BTC-768x201.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/IntoTheBLock-BTC-1536x402.png 1536w" sizes="(max-width: 1552px) 100vw, 1552px"></a>
 Source: IntoTheBlock
</div>
To investigate further, AMBCrypto checked Glassnode’s data. Our analysis revealed that most miners were selling their holdings, as shown by Bitcoin’s falling miners’ balance over the last 30 days. 
A possible reason behind this could be the drop in miner revenue. As per <a href="https://cryptoquant.com/asset/btc/summary" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">CryptoQuant</a>, BTC’s Miners Position Index (MPI) suggested that they were selling holdings in a moderate range compared to its one-year average.
<div id="attachment_362733" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362733" decoding="async" class="wp-image-362733 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners.png" alt="" width="1800" height="1013" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners.png 1800w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners-300x169.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners-1024x576.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners-768x432.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners-1536x864.png 1536w" sizes="(max-width: 1800px) 100vw, 1800px"></a>
 Source: Glassnode
</div>
AMBCrypto also noticed an outflow of miners from the Bitcoin mining industry. Coinwarz’s <a href="https://www.coinwarz.com/mining/bitcoin/hashrate-chart" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">data</a> revealed that BTC’s hash rate had declined sharply in the last week. At press time, the king coin’s hash rate stood at 483.89 EH/s.
<h4>Will this sell-off affect Bitcoin’s growth?</h4>
Though Bitcoin’s price action was bullish, a look at its on-chain metrics showed bearish indications. Notably, <a href="https://ambcrypto.com/microstrategys-unique-approach-to-holding-bitcoin-is-paying-off/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">BTC</a>’s exchange reserve had increased at press time. 
Its net deposit on exchanges was high compared to the last seven-day average, meaning that selling pressure on the coin was high during this period.
<div id="attachment_362734" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-BTC-1-5.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362734" decoding="async" class="wp-image-362734 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-BTC-1-5.png" alt="" width="1337" height="425" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-BTC-1-5.png 1337w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-BTC-1-5-300x95.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-BTC-1-5-1024x326.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/CryptoQuant-BTC-1-5-768x244.png 768w" sizes="(max-width: 1337px) 100vw, 1337px"></a>
 Source: CryptoQuant
</div>
Additionally, <a href="https://ambcrypto.com/amidst-bitcoin-spot-etfs-excitement-dont-forget-the-upcoming-halving/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">BTC</a>’s aSORP was in the red at the time of the report, which meant that more investors were selling at a profit. In the middle of a bull market, it could indicate a market top.
Is your portfolio green? Check out the <a href="https://ambcrypto.com/calculator/bitcoin-profit-calculator" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">BTC Profit Calculator</a>&nbsp;&nbsp;&nbsp;
Things in the derivatives market also did not look optimistic, as the king coin’s Taker Buy Sell Ratio was in the red. This indicated that selling sentiment was dominant in the derivatives market. 
Nonetheless, Bitcoin’s Open Interest remained bullish as it showed indications of rising alongside its price. Whenever Open Interest rises, it means an increased chance of trend continuation.
<div id="attachment_362735" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Coinglass-BTC.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362735" decoding="async" class="wp-image-362735 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Coinglass-BTC.png" alt="" width="1725" height="397" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/Coinglass-BTC.png 1725w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Coinglass-BTC-300x69.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Coinglass-BTC-1024x236.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Coinglass-BTC-768x177.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/Coinglass-BTC-1536x354.png 1536w" sizes="(max-width: 1725px) 100vw, 1725px"></a>
 Source: Coinglass
</div>

Bitcoin price surges 7%: Time to revive $50k predictions?

AMBCrypto

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