- Bitcoin traders might not want to sell right now, as an uptrend seems imminent.
- Miners, generally considered market-savvy participants, were unwilling to sell their holdings.
As a long-term crypto investor with some experience in the market, I find the current Bitcoin situation quite intriguing. The recent range formation and rejection from the $70k resistance are not new developments, but the context is different this time around.
Last week, Bitcoin [BTC] broke through the resistance at $67,000 with a narrower price range in its wake.
The price ranged between $70,500 and $66,800, with May 27th marking the rejection of Bitcoin at the higher end of this short-term price range.
At the last occasion when Bitcoin approached the $70k mark, conditions were contrasting. The bulls now hold a stronger position to carry on the uptrend.
Selling pressure from profit-taking activity will be far less
According to Julio Moreno, crypto expert and research leader at CryptoQuant, the present market profits stand at a 3% level, while they peaked as high as 69% during the impressive price surge in mid-March.
As an analyst, I would interpret this as follows: Over the past ten weeks, the market has effectively absorbed the selling pressure instigated by profit-takers during the consolidation period.
The event may have eliminated substantial long and short positions in the futures market through heavy liquidation, leading to a more authentic and price-based upward trend.
The market is showing robust signs of growth, benefiting significantly from investors with long-term perspectives. Sellers have run out of steam, while buyers have taken advantage of this lull to regroup and prepare for another surge in prices.
Miner’s position shows a bullish sign too
The miner’s outflow ratio is the proportion of recent miner outflows compared to the average miner outflows over the past year.
A decrease in this measure is a positive indication, implying that miners are becoming less eager and less active in offloading their holdings.
In simpler terms, the 14-day moving average touched its lowest point in over four years. This signaled miner reluctance to sell, and a rising trend for this indicator might indicate an upcoming market peak for traders.
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2024-05-29 10:15