Bitcoin has entered a price discovery phase after repeatedly surpassing all-time highs over the past week. The price has risen by a staggering 38% in less than ten days, highlighting the overwhelming bullish momentum that has gripped the market. BTC is consolidating below the $93,400 level as traders and investors anticipate its next move.
Key data from CryptoQuant reveals an interesting trend: BTC miners, including one from the Satoshi era, have begun selling large amounts of BTC. Notably, 2,000 Bitcoins were transferred, with a portion sent to exchanges, indicating active profit-taking among miners.
This behavior suggests that although demand remains strong, increased supply from miners could act as a short-term headwind, which could keep Bitcoin’s price below its recent highs.
If this selling trend continues, the price may continue to consolidate around current levels before attempting another breakout. However, broader market sentiment remains bullish, driven by strong institutional interest and favorable macroeconomic factors.
While mining activity adds a layer of complexity to price action, it also underscores Bitcoin’s resilience in absorbing sell-side pressures during its historic rally. Traders will be watching these developments closely as BTC moves into its next phase of price discovery.
Bitcoin supply maintains price (for now)
Bitcoin’s impressive bullish price action has finally slowed in the past few hours with minor profit-taking from holders and short-term miners taking place. The market saw a brief pause after a period of aggressive buying, but the overall bullish momentum appears to remain in place.
Key data was shared by the Head of Research at CryptoQuantJulio Moreno explains that BTC miners continued to sell during this phase. In a particularly noteworthy event, a miner from the Satoshi era transferred 2,000 bitcoins that had been mined in 2010 and had never been transferred before. A portion of these coins was transferred to exchanges, indicating active profit taking.
This activity suggests that although Bitcoin price may face temporary pressure from miner sales, it may be a healthy consolidation phase and not a sign of weakness. Profit taking is common after extended rallies and can keep the price around current levels for a short time.
However, the broader trend remains bullish as demand from institutional investors, including those using Bitcoin ETFs, continues to grow. In addition, long-term bond holders, who have shown resilience during previous market cycles, are unlikely to sell at current levels, providing strong support.
BTC could quickly resume its upward trajectory if these forces continue to outweigh miner selling pressure. While the recent cooling off period may bring a temporary lull, demand fundamentals suggest that Bitcoin is well positioned to push towards new highs once this profit-taking phase is over.
BTC is consolidating below ATH
Bitcoin is trading at $89,400 after a 7% rebound from its all-time high (ATH) of $93,483. After a strong push to discover a new price, the price is now consolidating below this level. This consolidation phase determines whether Bitcoin will continue its upward trajectory or face a deeper correction.
If Bitcoin settles above the $85,000 mark in the coming days, a rally towards new highs can be expected, with the $90,000 level serving as the next resistance. Market sentiment remains bullish, and strong support around $85,000 could serve as a springboard to challenge the previous ATH.
However, the price could test lower demand areas if Bitcoin fails to reclaim the $90,000 mark and falls below the $85,000 support level. The next potential support is around the $82,000 range, where buying pressure may increase. A break below this level could indicate a deeper correction, but bullish momentum remains intact as long as the $85,000 support level holds. Traders will be watching these levels closely to gauge Bitcoin’s short-term trend.
Featured image by Dall-E, chart from TradingView