Bitcoin miners quietly retreat: Early signals for the next BTC volatility?

In the past two weeks, the leading cryptocurrency in the market – Bitcoin (BTC) – has been struggling to maintain its bullish momentum, as it successively lost key support levels amidst rising concerns and increasing volatility.

In the face of a volatile market, Bitcoin miners are gradually pulling back, reflecting a trend of reducing their holdings of BTC – a signal that they may be preparing to sell.

BTC miners retreat as prices plummet

According to data from CryptoQuant, the amount of Bitcoin held in miners' wallets has continuously decreased over the past week. Based on the 7-day moving average, this indicator has slightly decreased by 0.022% – a modest figure but one that carries significant meaning.

This trend shows that miners are quietly "dumping" their holdings, possibly to offset the increasingly rising operational costs, or simply in response to the prolonged weakness of BTC prices. Financial pressure combined with a gloomy outlook is forcing them to reduce their holdings.

The BTC miner reserve index | Source: CryptoQuantThe "miner reserve" index (reflects the amount of BTC that miners still hold in their wallets – that is, the number of coins that have not been sold on the market. When the index increases, it is often a signal of confidence in the recovery trend, as miners decide to hold long-term.

Conversely, in the current context, this index declining means that BTC is gradually being moved out of personal wallets – a move that indicates a prevailing sense of anxiety overshadowing bullish expectations.

In addition, the MPI index )The position of Bitcoin miners( is recording a strong bullish trend, further thickening the gloomy picture of the market. Based on the 7-day moving average, the MPI has surged by 55% in just the past three days – a clear sign that the coin flow from miners' wallets is pouring into exchanges.

![tho-dao-btc])https://img-cdn.gateio.im/webp-social/moments-29bd74733f71180f08bcbe1871f32ec6.webp(Bitcoin: Miner Position Index | Source: CryptoQuantMPI measures the ratio of outflows from miner wallets compared to the average over a year. When this index spikes, it is often a signal that selling pressure from miners is increasing – likely they are looking to take profits before the market enters a deeper correction.

) Miners are selling off – a sign of a deeper correction for BTC

The retreat of miners indicates that they are lacking confidence in Bitcoin's ability to maintain the important psychological level of $100,000 in the short term. This skepticism has somewhat materialized in the last two trading sessions, as BTC temporarily broke through this key support zone.

! []###https://img-cdn.gateio.im/webp-social/moments-ff47a9e5dc4452bba12905b005547033.webp(Daily BTC/USDT Chart | Source: TradingViewAs of now, BTC is hovering around $104,990 – just slightly above the $103,952 support. In the context of increasing selling pressure from miners and the macro situation is still uncertain, the possibility of BTC retesting this support mark is completely possible if demand weakens.

If it cannot hold this price range, BTC risks dropping deep to $101,520. In the event that the bulls continue to lose ground, the downtrend could pull BTC below the $100,000 mark, even heading towards the $97,658 range.

However, there is still hope for a recovery scenario if market sentiment improves and buying capital returns. At that point, BTC could completely bounce back and break through the resistance level of $106,295.

SN_Nour