The price of Bitcoin (BTC) fell to a 52-week low of $20,800 earlier on Wednesday, down more than 70% from its all-time high of $68,788. Although the price has since climbed above $21,000, key market indicators indicate that the bears have significant influence in the current market.

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The flow of Bitcoin miners to the exchange, a measure of the amount of BTC sent by miners to crypto exchanges, rose to a seven-month high of 9,476. The increase in exchange flows indicates that miners are currently selling their BTC in anticipation of a price decline.

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The actions of BTC miners often reflect broader market sentiment as they are basically selling BTC to ensure they don’t suffer losses from mining rewards. The increase in Bitcoin miner sales activity is underpinned by a significant decline in mining profitability.

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Biggest Bitcoin Influx Since 2018 Threatens Potential $20K Bottom

Mining profitability has fallen over 75% from the upper limit, and Bitcoin hashing price is currently $0.0950 per TH/day, the lowest since October 2020.

Bitcoin Hashprice Index annual chart. Source: hashrate index

The net flow of miners to exchanges also became positive. When the miner’s net flow is positive, it means that more coins are sent to exchanges than to personal wallets. This behavior indicates that the miners are bearish on the price and forced to sell.

Many BTC mining rigs became unprofitable when the price fell below $21,000 and are at risk of being closed if the price does not recover. The rest of the crypto market followed BTC in their price action as the total market cap fell below $1 trillion.

Over the past decade, BTC has gone through many bull cycles followed by 80-90% drops from the top, however, the price of BTC has never dropped below the previous cycle’s all-time high. BTC is currently trading very close to its 2017 high of $19,783 and any possible selloff from here could push it into 2017 territory.