Over the past week, several dormant mining wallets from the Satoshi era have been moving large amounts of Bitcoin (BTC). Generally, when miners sell their Bitcoin, especially in large quantities, it can lead to selling pressure that pushes the price down. However, despite the recent miner selling activity, Bitcoin is up more than 7% to a high of $64,043 on Friday.
Bitcoin Mining Hardware Sales Remain Price Neutral as 100-Day EMA Hits Yearly Low
On Friday, five active wallet addresses were last closed in the Satoshi era, the early days after Bitcoin was created. Move 250 BTC worth $15.9 million were raised for new wallets. Each of these wallets received 50 BTC as a mining reward per block in 2009.
While these surprise Bitcoin transactions have sparked a lot of speculation in the crypto community, they have had little impact on Bitcoin’s positive price trajectory. Commenting on the development, CryptoQuant analyst with the username Darkfost said: It is clear The recent surge in early mining flows has had a neutral impact on the price as the 100-day EMA has been steadily declining.
In this context, the 100-day exponential moving average helps measure the average selling activity of early miners over the past 100 days and can be used to identify trends and detect price momentum. According to data from CryptoQuant, Darkfost highlights that the latest selling by early Bitcoin miners has failed to change the trajectory of this 100-EMA, which is currently at yearly lows.
Therefore, these outflows, although significant, are not capable of generating significant selling pressure that could impact the BTC price now or in the medium term.
Bitcoin Price Up 124% Despite Weak Mining Metrics
In other news, Bitcoin has had a great price performance amid weak mining fundamentals. According to Bitcoin ChainCheck Report According to asset manager VanEck, the leading cryptocurrency has gained 124% in value since the beginning of the year (YTD), increasing its market dominance to around 56%.
However, during this period, Van Eck explains that the Bitcoin hash rate, which measures how much revenue miners earn per unit of computing power used to mine Bitcoin, has fallen by 97%, indicating a decline in miners’ profitability alongside an increase in mining difficulty.
At the time of writing, Bitcoin is trading at $63,146, reflecting a 0.23% increase over the past 24 hours. However, its daily trading volume has decreased by 59.99% and currently stands at $14.1 billion. On the daily chart, Bitcoin is facing resistance near the $64,000 level. A decisive break above this level could pave the way for a rally towards the $70,000 range. On the downside, insufficient buying pressure could lead the price to slide towards the $54,000 level.
Featured image by Simplilearn, chart by Tradingview