$BTC August 20 Comments :

Bitcoin (BTC) traded around $58,000 on Monday, down 0.7% on the day and extending its ten-day consolidation between $57,000 and $62,000. From a technical perspective, the bearish thesis remains dominant as BTC struggles to overcome key resistance levels and momentum indicators appear weak. However, investor behavior and recent miner activity data suggest that selling pressure is easing, providing some support to the major crypto asset.

CryptoQuant’s data on Bitcoin’s Puell Multiple, which provides valuable insights into the cryptocurrency mining profitability cycle, suggests that miner selling pressure is easing.

The indicator measures the ratio between Bitcoin’s daily issuance value in USD and its 365-day moving average. When the Puell Multiple is high, it indicates that Bitcoin miners are earning higher than historical average USD rewards, potentially leading to increased coin sales to cover costs or capitalize on profits. Conversely, a low Puell Multiple indicates that miners are earning less than historical average, which could indicate reduced profits or less selling pressure from miners. Currently, Bitcoin’s Puell Multiple is at 0.7, potentially indicating a period of reduced profits or reduced selling pressure.