Bitcoin Nears ATH As Miners Hold Back On Selling—Bullish Signals Flashing

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As a seasoned analyst with over two decades of experience in financial markets, I’ve seen my fair share of market cycles and trends. The current state of Bitcoin is reminiscent of the dot-com boom in the late 90s, where skeptics were overshadowed by the relentless optimism of early adopters.

The value of Bitcoin has continued to hold steadily over the $75,000 threshold after hitting an unprecedented peak of $76,872 just yesterday.

Currently, the value of the cryptocurrency stands at approximately $76,587, representing a slight decrease of 0.9% from its highest point but still signifying a 1.7% growth for the day. This consistent performance indicates strength and sparked discussions about Bitcoin’s potential future price change.

Bitcoin Miners Hold Back On Selling, Why?

Currently, with Bitcoin’s price hovering around $76,000, an expert analyst from CryptoQuant, known as theKriptolik, has highlighted an interesting pattern in Bitcoin mining behavior.

Based on Kriptolik’s report, miners appear unwilling to cash out their Bitcoin even though it’s close to an all-time high in value. Their reasoning is that the current price still seems underestimated to them.

It was pointed out by the analyst that miners often shift Bitcoin to trading platforms and sell it as its price nears an all-time high (ATH) to meet their operational costs. Lately, such behavior hasn’t been seen much, suggesting that there might be a growing optimism among miners about future price increases.

Kriptolik explained this pattern by pointing to the mining community’s actions on October 29th. This is when a significant amount of Bitcoin moved into exchanges, leading to the selling off of their reserves without any subsequent withdrawals.

The fact that there’s been little movement of Bitcoins to exchanges among miners suggests they are confident about Bitcoin’s continued price rise. Historically, the behavior of miners has been a significant gauge of market feelings, as selling tends to occur near market peaks.

Optimism Among Analysts And Technical Signals

The optimistic outlook among miners is echoed by other market experts who have predicted a rising trend in Bitcoin’s price. For instance, well-known crypto analyst Javon Marks points out that Bitcoin’s steady hold above the crucial $67,559 mark paves the way for more growth in its value.

Based on Mark’s analysis, there’s a possibility that Bitcoin could surge by more than 51%, potentially reaching a price of $116,652. He highlighted that this increase might occur quicker than some investors expect, primarily due to robust market fundamentals.

Likewise, another analyst from CryptoQuant, Mignolet, has given a forecast indicating that the factors required for Bitcoin to proceed with its second stage of a bull market are aligning.

Mignolet clarified that the shift we’re experiencing is characterized by adjustments in the behavior of investors, notably long-term and short-term ones. Specifically, he referred to changes among Long-Term Investors (LTI) and Short-Term Traders (STI).

As LTH (Long-Term Holder) coins start circulating, a surge of fresh funds is essential to keep the upward trend going strong. Mignolet explains that the present market scenario, marked by abundance of liquidity and reminiscences of the 2017 bullish era, provides the necessary conditions for Bitcoin’s Phase 2 price advancement.

Conditions for entering Phase 2 are being completed

To progress into Phase 2, it’s crucial that we see a boost in the availability of Structured Trade Finance (STH). This can be achieved by a significant influx of fresh funds, which the market is currently witnessing in the form of surging new liquidity.

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— CryptoQuant.com (@cryptoquant_com) November 8, 2024

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2024-11-09 14:10