Bitcoin Decouples From Miner Flows With -0.15 Correlation – What It Means For Price?

Following a slight slump yesterday from its recent highs, Bitcoin (BTC) is now trading in the low $120,000 range. Meanwhile, BTC’s miner correlation has undergone a significant shift over the past few months, indicating a clear change in market dynamics between miner behavior and price ￰0￱ Miner Correlation Turns Negative According to a CryptoQuant Quicktake post by contributor Arab Chain, fresh data from Binance shows that Bitcoin price and miner flows to the crypto exchange have undergone a significant shift in recent ￰1￱ Reading: Bitcoin Whales Are Back: Three Indicators Suggest A Run Toward $130,000 Specifically, the 30-Day Rolling Correlation indicator has tumbled to its lowest level since March ￰2￱ October 3, this indicator fell to -0.157, its lowest reading in more than five ￰3￱ then, it has remained close to the -0.10 ￰4￱ the uninitiated, the 30-day rolling correlation indicator measures how closely two variables, such as Bitcoin’s price and miner flows, move together over the past 30 days.

A positive value means they typically rise or fall in tandem, while a negative value means they move in opposite ￰5￱ is worth noting that the indicator had previously been moving within a positive range of 0.1 to 0.5 during Q2 ￰6￱ shift from positive rage to negative suggests that the recent surge in BTC price has not been driven by miner flows to ￰7￱ is in stark contrast to previous cycles, where miner flows to exchanges played a key role in BTC’s price movement. However, the current cycle’s positive price action can be attributed to increased demand from investors and ￰8￱ Chain added: In past cycles, when the price rose, miners often transferred larger amounts of Bitcoin to exchanges to sell and take profits, creating a positive correlation between price and miner flows – meaning that as prices increased, flows also ￰9￱ Chain added that the decline in correlation indicates a phase of “price independence” where miners opt to hold their BTC rather than sell it during times of price appreciation.

A fall in miner signal is usually considered a bullish signal, as it reduces BTC’s circulating ￰10￱ said, if the correlation turns strongly positive again, it could signal the return of selling pressure and a medium-term price correction could be ￰11￱ present, the BTC market is showing a healthy balance between demand and ￰12￱ Needs To Defend This Level Following BTC’s fall to the low $120,000 range, some crypto analysts say that the top cryptocurrency must defend the $120,600 level to avoid further crash. However, not all analysts are bearish on BTC just ￰13￱ Reading: $140K Or Bust? Simulation Says Bitcoin’s Odds Are Now 50-50 For instance, crypto entrepreneur Arthur Hayes predicts that US President Donald Trump could send BTC to $250,000 by the end of ￰14￱ press time, BTC trades at $121,375, down 0.8% in the past 24 ￰15￱ image from Unsplash, charts from CryptoQuant and ￰16￱