Bitcoin Mining Trend Miners Bet on Recovery After BTC Drops 10

CoinJiawang Report:
BTC fell more than 10% in the past 7 days. The balance of Bitcoin miners has increased, indicating that they are buying Bitcoin.
Bitcoin (BTC) has recently fallen due to multiple price adjustments, as its price continues to remain below the $5,700 mark. This bearish price action is certainly having a direct impact on market sentiment.
Therefore, AMBCrypto planned to understand how the Bitcoin mining industry is being affected by the price drop.
Status of Bitcoin miners after price adjustments
Data from CoinMarketCap shows that the price of BTC has dropped more than 10% in the past seven days. In just the past 24 hours, the coin has fallen more than 1.3%.
At the time of writing, BTC’s trading price is $56,651.71, with a market value of over $1.12 trillion. Price drops often lead to a decrease in miners’ profitability.
Furthermore, BTC recently underwent its fourth halving, which has reduced miners’ rewards.
AMBCrypto’s analysis of BitInfoChart data shows that the profitability of BTC mining did indeed decrease significantly last week. At the time of writing, Bitcoin miners’ profitability is $0.0432 per day.
However, interestingly, BTC’s hash rate remained relatively stable last week. In fact, this indicator surged on July 7th, reaching 691.8 Eh/s.
Generally, an increase in this indicator signifies an increase in computational power, indicating that more Bitcoin miners have entered the network. Typically, when the hash rate rises, the mining difficulty of the blockchain follows a similar trend.
However, in this instance, the situation is different. We looked at CoinWarz data, which shows that BTC’s mining difficulty decreased on July 5th. At the time of writing, the Bitcoin mining difficulty is 79.50T.
Are Bitcoin miners selling Bitcoin?
Despite the increase in hash rate, miners’ profitability has indeed decreased. Therefore, AMBCrypto plans to further understand miners’ behavior after the coin’s price plummeted.
AMBCrypto’s analysis of Glassnode data shows that last week, BTC miners’ net position change was in the negative territory. This indicates significant selling pressure from miners on BTC.
However, interestingly, the balance of Bitcoin miners sharply increased on July 8th. This clearly indicates that Bitcoin miners have regained confidence as they anticipate a price increase in the coming days.
Read Bitcoin’s [BTC] price predictions for 2024-2025
To determine whether the increase in miners’ balance will have a positive impact on the price of BTC, we looked at its daily chart. We found that its Money Flow Index (MFI) and Chaikin Money Flow (CMF) have both shown an increase, suggesting that the price will soon rise.
Nevertheless, this technical indicator is displaying bearish dominance in the market.