- 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.
Bitcoin [BTC] noted a smaller range formation after breaking out past the $67k resistance last week.
This range reached from the $70.5k resistance to the $$66.8k support, and the 27th of May saw BTC rejected from the shorter-term range high.
However, unlike the previous time that Bitcoin tested the $70k area, things are quite different. The bulls have a much better chance of continuing the trend upward.
Selling pressure from profit-taking activity will be far less
Source: Julio Moreno on X
Crypto analyst and head of research at CryptoQuant Julio Moreno observed that the profit margin at current market prices is at 3% compared to the 69% it reached in mid-March when prices rallied that far north.
This means that the past 10 weeks of consolidation have absorbed the selling pressure from profit-takers.
It has also likely wiped out high-leverage longs and shorts in the futures market and paved the way for a more organic, spot-driven uptrend.
This is strongly bullish for the market and especially for investors with a high time horizon. The sellers are exhausted, and the buyers have had enough time to gather steam for the next upward charge.
Miner’s position shows a bullish sign too
Source: CryptoQuant
The miner’s position index is the ratio of total outflow from miners to the one-year moving average of the total outflow from miners.
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A downtrend in this metric is a bullish sign, as it shows miners are less willing and less involved in selling.
The 14-period simple moving average reached a low not seen in more than four years. This showed that miners are not willing to sell. An uptrend in this metric could inform traders of a potential top.
