Bitcoin silently breaches resistance, spurred by altcoin rally
- CryptoQuant revealed that Bitcoin miners increased their accumulation over the last few weeks.
- However, the latest data suggested that selling sentiment was dominant.
The crypto market was witnessing a bull rally as most altcoins’ charts were painted green. While several of the cryptos’ registered double digit growth, Bitcoin [BTC] seemed to have taken a back seat.
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However, the surface-level observation was not true, as the king of cryptos broke out of its $31k resistance.
Bitcoin is the silent achiever
The altcoin market is booming as crypto prices have skyrocketed since XRP’s court ruling. XRP, in particular, registered a 24-hour uptick of over 71%. BTC, on the other hand, was relatively slow to move.
According to the CoinMarketCap, BTC’s price had increased by nearly 4% and 4.5% in the past day and week, respectively. At the time of writing, BTC was trading at $31,392.93 with a market capitalization of over $609 billion.
But as per Santiment’s 14 July tweet, BTC was also to cross a key resistance level of $31,500 for the first time since June 2022. However, at press time, it again fell under that bar.
It was interesting to note that sharks and fish were the key contributors to this achievement. The tweet pointed out that while whales were shedding their holdings, sharks and fish, on the other hand, were accumulating more Bitcoin.
? While eyes are on $XRP‘s huge run, #Bitcoin quietly broke out of its resistance and has breached $31.5k for the first time since June 1st, 2022. Other assets may have bigger returns, but don’t overlook $BTC‘s significance & how its addresses fluctuate. https://t.co/rujTjKsVi8 pic.twitter.com/jKhK9V6opm
— Santiment (@santimentfeed) July 14, 2023
Additionally, the latest CryptoQuant analysis revealed that apart from investors, miners also played their part in pushing up BTC’s price. Takeronchain, an analyst and author at CryptoQuant, used the Exchange to Miners Indicator to reveal an interesting update.
As per the analysis, the miners-to-exchange indicator has experienced a moderate increase, lower than the exchange-to-miners indicator. This suggested that the miners had a stronger inclination to retain their Bitcoin holdings.
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Not everything is picture perfect
While the aforementioned metrics looked ambitious, the ground reality was different. For instance, miners’ sentiment changed, as evident from the red Miners’ Position Index (MPI). Bitcoin’s aSORP was also red, meaning that miners were selling their assets at a profit.
A similar selling sentiment was also revealed by Bitcoin’s increase in exchange reserves, which could halt BTC’s gains. Additionally, BTC’s taker buy/sell ratio revealed that selling sentiment was dominant in the derivatives market, which was concerning.