- Bitcoin traders may not want to sell at this time as an uptrend appears imminent.
- Miners, who were generally considered market-conscious participants, were unwilling to sell their assets.
Bitcoin [BTC] noted a smaller range formation after breaking the $67k resistance last week.
This range extended from the $70.5k resistance to the $$66.8k support, and on May 27, BTC was rejected from the shorter-term high.
However, unlike the last time Bitcoin tested the $70,000 area, things are very different. The bulls have a much better chance of continuing the upward trend.
The selling pressure due to profit taking will be much less
Crypto analyst and head of research at CryptoQuant Julio Moreno noted that the margin of profit at current market prices it stands at 3% compared to the 69% reached in mid-March when prices rose this far north.
This means that the past ten weeks of consolidation have absorbed the selling pressure from profit takers.
It also likely wiped out highly leveraged longs and shorts in the futures market, paving the way for a more organic, spot-driven uptrend.
This is strongly bullish for the market and especially for investors with a high time horizon. The sellers are exhausted and the buyers have had enough time to build up steam for the next upside.
The miner’s position also shows a bullish sign
The miner position index is the ratio of total miner outflows to the one-year moving average of total miner outflows.
Is your portfolio green? Check out the BTC profit calculator
A downward trend in this measure is a bullish sign because it shows miners are less willing and less committed to selling.
The fourteen-period simple moving average reached a low not seen in more than four years. This showed that miners are not willing to sell. An uptrend in this measure could inform traders of a potential top.