Bitcoin has managed to maintain its footing above the $75,000 price mark following a new all-time high (ATH) of $76,872 recorded yesterday.
At present, the cryptocurrency is trading at $76,587, reflecting a modest 0.9% dip from its peak while still marking a 1.7% daily increase. This stability signals resilience and has fuelled speculation regarding Bitcoin’s next price move.
Bitcoin Miners Hold Back On Selling, Why?
As Bitcoin currently trades above $76,000, a CryptoQuant analyst identified as theKriptolik has pointed out a notable trend among Bitcoin miners.
According to theKriptolik, miners are refraining from selling their BTC holdings, even with the asset trading near its ATH, as they believe the current valuation remains undervalued.
The analyst highlighted that miners typically transfer BTC to exchanges and sell it when prices approach an ATH, partly to cover their operational expenses. However, this behaviour has not been observed recently, signifying a potential belief in further price gains.
TheKriptolik elaborated on this behaviour by referencing miner activity on October 29, when a substantial inflow of BTC to exchanges occurred, resulting in a sale of the holdings with no corresponding outflows.
This lack of recent exchange-bound transfers indicates miners’ confidence in Bitcoin’s ongoing upward momentum. Historically, miner behaviour has served as a key indicator of market sentiment, with sales often coinciding with market tops.
Optimism Among Analysts And Technical Signals
The positive sentiment among miners is mirrored by other market analysts, who have offered bullish forecasts for Bitcoin’s price trajectory. Javon Marks, a prominent crypto analyst, noted that Bitcoin’s ability to maintain a stronghold above a critical $67,559 level sets the stage for further upward movement.
According to Marks, Bitcoin could experience a rally of over 51%, potentially pushing the price to $116,652. Marks emphasized that this movement could unfold at a faster pace than many market participants currently anticipate, driven by strong underlying market dynamics.
Similarly, another CryptoQuant analyst, Mignolet, has provided an outlook that suggests the conditions for Bitcoin entering the second phase of its bull rally are falling into place.
Mignolet explained that this transition involves changes in market participant behaviour, particularly among long-term holders (LTHs) and short-term holders (STHs).
As LTH supply begins to be distributed, an influx of new liquidity and capital is critical to sustaining the rally’s momentum. According to Mignolet, the current market environment, characterized by increased liquidity and echoes of the 2017 bull cycle, supports the completion of Phase 2 of Bitcoin’s price surge.
Conditions for entering Phase 2 are being completed
“A key condition for moving into Phase 2 is an increase in STH supply, specifically through a surge in new capital. Currently, the market is experiencing abundant new liquidity.” – By @mignoletkr
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— CryptoQuant.com (@cryptoquant_com) November 8, 2024
Featured image created with DALL-E, Chart from TradingView
