Then, you can also find out more about the following: analysis CryptoQuant reported a notable change in Bitcoin mining behavior, which could be a sign of a new turning point. Crypto Dan analyst of CryptoQuant outlined the reduction in selling pressure by miners. This has been historically a major factor for Bitcoin’s value trajectory.
Bitcoin Mining Sales Pressure Drops
Crypto Dan is a cryptographic expert. “Miners’ selling pressure decreases. One of the whales that have caused the cryptocurrency market to fall recently have been miners.” He said that the BTC halvingThis change, which reduced mining rewards by half, resulted in a reduction of overall mining activity. The change in mining rewards forced some miners to start selling Bitcoin. over-the-counter (OTC) transactions To sustain their operation.
Analysis suggests the market has absorbed the current sell-off. There is a noticeable decline in both the amount and the frequency with which Bitcoins are transferred from the wallets of the miners. “The current market can be seen as being in the process of digesting this sell-off, and fortunately, the quantity and number of Bitcoins miners are sending out of their wallets has been rapidly decreasing recently,” Crypto Dan has been stated.
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This shift has significant implications. Crypto Dan said. “In other words, the selling pressure of miners is weakening, and if all of their selling volume is absorbed, a situation may be created where the upward rally can continue again.” He predicted positive market movements for the third quarter in 2024.
CryptoQuant’s historical data confirms the results of this analysis. BTC previously showed a pattern in which miner sales had a significant impact on the market price. This was particularly evident from May 2023 through September 2023, and December 2023 until January 2024. BTC’s price fluctuated sideways for a long time during these times, in line with the peak in mining activity. Bitcoin’s price began an upward movement when the selling activity decreased.
It is possible that this pattern could signal a significant change in mining sales. bullish phase Bitcoin is a good investment, since the market seems to be ripe for another similar turn of events.
Key Price Level For A Bullish Breakout
Then, you can read on. insights from technical analysts at alpha dōjō provide a granular view of the market conditions. They provide a daily market update, highlighting the indecision of Bitcoin. “chopping around” Without a clear direction. Analysts have identified price levels that could be indicators of future market movement. “If BTC reclaims the $63.5k area, it would be bullish; if it loses the $60k level, it would be bearish.”
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The technical analysis shows also that liquidity on the Bitcoin markets is dispersed with only a few large clusters. Around the $63.5k price mark, there is a notable concentration of order. This suggests that this level could be pivotal in determining market sentiment or potential bullish momentum.
The order book data provided by alpha dōjō highlights a current dominance of sell orders, indicating a bearish sentiment among traders. The bid side, on the other hand, is weak with few buy orders to support upward movements. The current market imbalance may indicate that investors are hesitant to take large positions, as they wait for clearer signals.
BTC is currently trading for $61,704.
Featured image created with DALL·E, chart from TradingView.com
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Source: www.newsbtc.com
