Bitcoin (BTC) price has shown significant fluctuations, oscillating between key support and resistance levels. Many traders are eyeing the possibility of a breakout.
Miners Continue to Sell Bitcoin Amidst Price Surge
Bitcoin miners have taken advantage of the recent price surge, selling significant amounts of BTC. Reports indicate that they sold 943 BTC, worth approximately $850 million, following a rally in the cryptocurrency’s price.
This action by miners has been a key factor in ongoing price movements. Selling pressure from miners could lead to short-term corrections, as they often sell during price increases to capitalize on profits.
However, while miners' selling may exert pressure on the market, it’s important to note that this behavior does not necessarily indicate a bearish sentiment in the long term. Miners typically sell a portion of their holdings to cover operational costs, especially during periods of high volatility and rising prices.
Technical Analysis of Bitcoin Price and Breakout Possibility
From a technical standpoint, the Bitcoin price was testing a critical resistance level around $97,530 at the time of writing. A breakout above this level could signal further bullish momentum, potentially pushing Bitcoin toward new all-time highs.
The price has been fluctuating within a range. While some corrective actions have taken place, the price has held strong near key levels.
If Bitcoin manages to break the $97,530 resistance, it could quickly approach the $98,300 mark. Analysts are closely monitoring the market for a clean breakout as price continues to consolidate.
While the market remains in a corrective phase, this consolidation could set the stage for a breakout. Bullish momentum must pick up in the coming days to make that breakout feasible.
Market Sentiment and Demand Divergence
Amidst a week that saw the digital asset reach a new all-time high, observations suggested that the Bitcoin market sentiment was mixed. More than 85% of Bitcoin holders were in profit, which could indicate a euphoric state in the market.
This could also suggest that it is in the overbought zone. Thus, a short-term pullback may occur. Moreover, the 30-day Demand Momentum for Bitcoin remained negative, signaling a lack of strong demand from short-term holders.
According to data, long-term holders were accumulating less BTC than short-term holders were distributing. This divergence suggested that the recent price gains could be driven more by traders than by long-term investors.
Such dynamics typically precede retrenchments in the market, raising concerns over the stability of the current Bitcoin price. However, the number of active addresses was on the rise, presenting a positive sign for the Bitcoin market regarding short-term retracements.
Currently, Bitcoin faces a multitude of factors that can affect its price, including miner activity, technical levels, and overall market sentiment. The coming days may prove crucial in determining the future price direction.
