bitcoin Miner Sales Remain Price Neutral As 100-Day EMA Hits Yearly Low
On a particular Friday, five wallet addresses, last activated during the Satoshi era in 2009, transferred a total of 250 BTC, valued at $15.9 million, to new wallets. These addresses are notable for each having received 50 BTC as a mining reward per block. This movement raised eyebrows within the cryptocurrency community; however, it did not significantly disrupt bitcoin’s ascending price trajectory.
An analysis by a CryptoQuant analyst, known by the username Darkfost, shed light on this situation. The analyst pointed out that the recent spike in outflows from early miners had a neutral effect on bitcoin's price. This observation was attributed to the 100-day exponential moving average (100-day EMA) consistently trending downwards. The 100-day EMA serves as a critical metric for gauging the average selling activity of early miners over the past 100 days and plays a pivotal role in identifying trends and momentum in price movements. According to CryptoQuant’s data, the transactions by early bitcoin miners have not significantly altered the trajectory of the 100-day EMA, which is currently at its lowest point for the year.
Consequently, these significant outflows, while noteworthy, are insufficient in generating substantial selling pressure that could materially affect bitcoin’s price in the immediate or medium term.
BTC Up By 124% Despite Poor Mining Metrics
Amidst these mining dynamics, bitcoin has demonstrated an impressive performance in the market. As per the bitcoin ChainCheck report by asset manager VanEck, bitcoin has seen a notable increase in its Year-To-Date (YTD) value, gaining 124% and achieving a market dominance of approximately 56%. This surge comes in spite of diminishing mining fundamentals.
VanEck’s analysis highlights a drastic 97% drop in the bitcoin hash price, indicating a significant reduction in miner profitability. This reduction comes alongside an increase in mining difficulty, suggesting that the revenue miners earn per unit of computational power has dramatically decreased.
At present, BTC is trading at $63,146, reflecting a minor gain of 0.23% over the past 24 hours. However, its daily trading volume has seen a sharp decline of 59.99%, currently standing at $14.1 billion. On the daily chart, bitcoin confronts resistance around the $64,000 mark. A decisive breakout above this threshold could potentially lead to a rally towards the $70,000 range. Conversely, a lack of sufficient buying pressure might trigger a decline to the $54,000 level.
The unfolding scenario in the bitcoin market underscores the complexity of factors influencing its price. Despite potential selling pressures from significant movements of BTC by early miners, the market has maintained a robustly positive trajectory. This resilience highlights the intricate interplay between historical supply dynamics and current market sentiments, suggesting that bitcoin's foundational strength remains undiminished amidst these testing conditions.
