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Bitcoin Price Prediction: BTC miners take advantage of high prices to sell and lock in profits, breaking the $120,000 resistance in August will end the consolidation.
From July 2 to July 22, Bitcoin miners' reserves steadily increased, reflecting the accumulation of Bitcoin. On July 14, the price of the coin surged to a historical high of $122,054. At that time, miners seemed confident in the bullish momentum of Bitcoin, holding onto their gains in anticipation of price increases. However, since reaching that peak, Bitcoin has struggled to maintain its upward momentum. As a result, miners began to sell off their coins to lock in profits. This shift brought new resistance to Bitcoin in August and raised market attention to its future trends.
Miners shift from holding to selling, Bitcoin bull market pauses
(Source: CryptoQuant)
As the value of BTC began to rise earlier this month, miners on the Bitcoin network have also increased their accumulation, which is reflected in the rise of Bitcoin miner reserves. According to data from CryptoQuant, this indicator observed using the seven-day moving average (7-day SMA) increased by 0.05% from July 1 to July 22, reaching a peak of 1.808 million coins.
The miner reserve indicator tracks the total amount of Bitcoin held in wallets associated with mining entities. When reserves increase, it indicates that miners are holding Bitcoin rather than selling, reflecting bullish sentiment or expectations of continued price increases.
However, as BTC surged to its peak on July 14 and entered the subsequent consolidation phase (during which continuous trading occurred), the bullish sentiment among miners began to wane. According to CryptoQuant, miner reserves have been on a downward trend since July 22, indicating an increase in profit-taking or a decrease in confidence regarding BTC's short-term price prospects. Given that miners control a significant portion of the new supply of BTC, changes in their behavior could impact price movements. This decline in miner reserves might exacerbate selling pressure, thereby increasing the risk of a price pullback for BTC in August.
Institutional capital inflow may offset the selling pressure of mining stocks in August
(Source: SoSoValue)
In an exclusive interview with Zignaly co-founder and CFO Abdul Rafay Gadit, he stated that the recent rise in miner reserves at the beginning of July "may be a short-term pause rather than the start of aggressive accumulation." He told BeInCrypto: "The increase in miner reserves indicates that they are choosing to hold Bitcoin, possibly waiting for stronger market signals or more favorable price conditions. This does not yet reflect widespread accumulation; rather, it seems to be a strategic slowdown in dumping. If Bitcoin prices stabilize or show an upward trend, we may see accumulation gradually resume, but for now, it is more important to hold the capital rather than gradually accumulate."
When asked about the relative impact and expectations of miner activity and institutional demand on BTC's current price performance, Gadit pointed out: "Institutional demand is the true pillar of Bitcoin's current price structure. The inflow of funds from ETFs, especially those managed by BlackRock, Fidelity, and Ark, is forming a sustained structural buying pressure, which is more effective in supporting price levels than the reduction in miner dumping." He added: "While miner behavior has indeed played a role in alleviating short-term supply pressure, the real force driving market direction lies in institutional capital, broader participation, and the growing expectation of a more favorable regulatory environment. The reality is that miners are no longer the leaders, but institutions are."
As institutional demand for BTC continues to grow (as reflected in the steady inflow of BTC-supported ETFs), any potential selling pressure from miners may be effectively offset, helping to maintain the stability of Bitcoin prices in August. According to data from SoSoValue, although Bitcoin trading has mostly consolidated, the net inflow amount for Bitcoin ETFs has reached $237 million so far this week. This confirms Gadit's view that institutional capital, rather than miner activity, is the main force supporting BTC prices, and may help stabilize BTC prices in the coming month.
Can Bitcoin break free from the sideways trend?
As of the time of writing, the trading price of BTC is $117,826, hovering between the support level of $116,952 and the resistance level of $120,811. If institutional demand increases and the overall market sentiment improves, it may drive the coin price to break through the resistance level of $120,811, setting a historical high in August. On the other hand, if bearish pressure rises, the currency may fall below $116,925 and drop to $114,354.
Conclusion:
The selling behavior of Bitcoin miners has brought new uncertainty to the market in August. However, due to the continuous inflow of institutional funds, especially through strong buying from ETFs, it is expected to offset the selling pressure from miners and support Bitcoin prices. Whether BTC can break through the resistance level of $120,000 in August and end the consolidation will depend on the sustainability of institutional demand and shifts in overall market sentiment.