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Bitcoin: Key data reveals why you shouldn’t sell just yet

2min Read

Bitcoin’s profit margin and miner positions reveal bullish signs for the crypto market.

Bitcoin: Key data reveals why you shouldn't sell just yet
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  • 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

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

Bitcoin Miner's Position Index

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.

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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