It’s no secret that the past few weeks have been tough for Bitcoin. The most important digital asset by market capitalization suffered significant losses that severely damaged the bullish market structure that emerged in January and February.
Although analysts are skeptical that this ongoing sell-off will expand much further, there are a variety of factors that may represent a worst-case scenario for cryptocurrency in the near future.
These mining-related factors seem to indicate that Bitcoin may face an intense bear market over the next 60 days as the much anticipated halving is rapidly approaching.
Bitcoin metric illustrates miner’s skepticism about the recent recovery
The recovery observed in early 2020, which led Bitcoin from a low of $ 6,800 to a high of $ 10,500, seemed incredibly strong, with many investors citing the upcoming halving of mining rewards as the reason cryptocurrency would continue to climb .
However, data seemed to speak a different language.
As originally reported by Coindesk, the miner’s rolling inventory (MRI) shows that the miners have not sold on a large scale – and this suggests that despite steady growth, they are not necessarily strong and liquid believe the market.
It seems that this cynicism was justified – because the intense buying pressure that Bitcoin has exerted throughout January and the first half of February has almost disappeared. BTC was only a hair’s breadth from trading below the level at which it had opened the year.