Have Bitcoin miners triggered a consolidation phase post BTC’s ATH?
Bitcoin miners’ recent profit-taking hints at a cooling-off period, but the $100K milestone is still within reach.
- Bitcoin held steady above $90,000 despite increased miner selling and profit-taking activity.
- On-chain data highlighted a potential consolidation phase before the next potential breakout.
Bitcoin [BTC] has maintained strong bullish momentum, staying above $90,000 and nearing new all-time highs.
However, recent on-chain data shows that bitcoin miners have sold over 3,000 BTC in the past 48 hours, potentially signaling a short-term pullback.
While miner profit-taking can lead to increased supply, Bitcoin’s ability to hold above $90,000 suggested strong market confidence, alongside the beginning of a consolidation phase.
Bitcoin miners take profits
Crypto analyst Ali Martinez recently pointed out that Bitcoin miners have sold over 3,000 BTC, worth around $273 million, in the last 48 hours.
This surge in miner selling typically signals a cooling-off period, as miners, often seen as long-term holders, take profits during periods of rapid price growth.
Such behavior is common in strong bull markets and suggests that the market may be gearing up for a brief pause or a price correction in the near term.
Source: CryptoQuant
The miner outflow chart showed significant spikes in Bitcoin leaving miners’ wallets, coinciding with the recent price surge.
Historically, such sell-offs indicate miners locking in profits, potentially signaling a cooling-off period.
Source: CryptoQuant
Bitcoin’s strong network health was also proven with hashrate levels reaching new highs.
This growth reflected heightened network security and competitiveness, highlighting miner confidence even as they offloaded some of their holdings.
A rising hashrate underscored positive long-term fundamentals, despite the short-term selling pressure.
Bitcoin stands strong
Source: TradingView
Bitcoin’s price has been on a relentless rise, setting new all-time highs multiple times in the past 11 days — a clear testament to its continued bullish momentum, as it stands strong above the $90,000 level.
However, after such a strong rally, the market seems to be entering a consolidation phase, as profit-taking from both investors and miners gains momentum.
Consolidation phase ahead?
Bitcoin’s current consolidation phase above $90,000 is a natural and beneficial step following its explosive rally.
Consolidation allows the market to absorb recent gains, shake out weaker hands, and establish a stronger foundation for the next move.
Key support levels, particularly in the $88,000-$90,000 range, will be critical in maintaining the bullish structure.
A drop below these levels could signal increased selling pressure, potentially triggering a deeper correction, while a strong defense of this range may reaffirm market confidence and set the stage for further growth.
Read Bitcoin’s [BTC] Price Prediction 2024–2025
Despite short-term selling pressure from miners and profit-taking by investors, Bitcoin’s fundamentals remain robust.
Should Bitcoin sustain these levels, the possibility of a breakout toward $100,000 can become increasingly likely, positioning the ongoing consolidation as a critical stepping stone towards further price increase.
