According to on-chain data, Bitcoin miner reserves have dropped gradually to record lows, which could point toward the onset of a bullish trend.

Data from IntoTheBlock shows a gradual drop in BTC miner reserves. At the beginning of the year, miner reserves sat at 1.95 million BTC. This has since dropped to 1.90 million coins, the lowest level recorded in 14 years.

BREAKING: #Bitcoin miner reserves have dropped to their lowest level in 14 years, now at 1.90M BTC, down from 1.95M BTC at the start of 2024. Despite this, the fiat value of their holdings remains near an all-time high. #Crypto $BTC #BitcoinMining

— CapitalBay (@CapitalBay_news) June 20, 2024

Bitcoin is trading at $66,099 on June 23 at 08:36 a.m. EST after a 0.4% gain.

Bitcoin Miner Reserves Hit Multi-Year Lows 

Low Bitcoin miner reserves are a bullish indicator. Miners holding fewer bitcoins indicate they might have sold a significant amount to cover mining expenses, lowering the immediate selling pressure.

However, miners also appear to be among the triggers of the recent downtrend. Miner over-the-counter OTC selling volumes have increased to the largest level since March. This indicates that the recent downtrend stemmed from this activity.

Despite the high selling activity, miner holdings in fiat value are at a record high of $135 billion, an indicator that miners prefer short-term profitability to long-term accumulation.

According to one analyst on X, QuintenFrancois, the miner’s behavior is similar to what was seen during the past halving cycle. The analyst believes Bitcoin will potentially break the current pattern after 150 days.

Miners typically sell after halving after their rewards are reduced in half to meet mining costs, which could explain the current trend. 

Bitcoin Is Primed For an Uptrend

As miner reserves plummet and Bitcoin continues to trade rangebound, analysts speculate that an uptrend could be around the corner. According to Michael van de Poppe, BTC has bottomed at the $63K-65K range, with an uptrend being the only expected trend.

#Bitcoin has likely bottomed in this area between $63-65K and finding itself in upward momentum. As a result, #altcoins start to show more strength, as the Bitcoin dominance is going down.The reversal is on the horizon.

— Michaël van de Poppe (@CryptoMichNL) June 20, 2024

The bullish take was also shared by analyst Dann Crypto Trades, who noted that Bitcoin’s spot premium is back to healthy levels. The spot premium shows the price difference between BTC traded on the spot market and what is traded in futures markets.

The positive spot premium now indicates that there could be a solid immediate demand for Bitcoin. 

#Bitcoin Spot premium back to healthy levels.

— Daan Crypto Trades (@DaanCrypto) June 20, 2024

However, Santiment notes that even if an uptrend were to happen, it would not be very significant as the market remains “fearful or disinterested.” This trend shows an extended fear, uncertainty, and doubt (FUD).

The Bitcoin Fear and Green Index is at 60, showing greed, confirming a shift in investor sentiment.