Selling pressure on bitcoin (BTC) miners has been declining after a major sell-off in January. This could be a positive thing for bitcoin, seen as a âcatalyst for prices to float higher,â according to a report by Stack Funds, a provider of cryptocurrency index funds in Asia.
Miners' seven-day outflows are at the lowest level in five years, currently trading around the 1.0 level, according to CryptoQuant, a South Korean cryptocurrency data firm.
The last time the miner outflow indicator dipped to current levels was back in 2015 when âbitcoin went on a parabolic rise that lasted more than two years,â according to Stack Funds.
The breakdown in the outflow indicator suggests miner selling pressure will continue to remain low.
âOverall, most fundamental indicators suggest miners are back into accumulating, and we expect $50,000 to be a strong support handle for bitcoin in the near term,â according to Stack Funds.
Chart shows slowing pace of miner outflows, breaking down similar to 2015 which preceded a massive bitcoin rally.
