Is Bitcoin on the verge of a breakout? On-chain data provides answers
Bitcoin fell sharply over the weekend and large investors in particular took this opportunity to buy up. At the same time, many miners are holding their hands still and selling less Bitcoin. When will the price crack the 50,000 US dollar mark?
After Bitcoin and many other altcoins fell sharply last Sunday, investors took the opportunity to buy aggressively. Within the last 24 hours, the Bitcoin price has of Crypto Profit risen by 5.01 per cent and at the time of going to press, one BTC costs 48,993 US dollars.
In the past, BTC miners have repeatedly caused bitcoin price corrections. While miners were the reason why BTC failed to crack the US$50,000 mark last weekend, it now seems that they have all but stopped the selling.
Currently, the level of selling by miners is at a similar level as before Bitcoin’s price rise at the end of 2020.
This trend becomes clear when you look at the data from CryptoQuant. BTC sales by miners are currently at a multi-month low and in recent weeks fewer and fewer miners have been selling bitcoin in the market.
Bitcoin whales are lining their pockets
Large investors have taken advantage of the price decline in recent days and aggressively bought Bitcoin. Data from Whalemap shows that the cryptocurrency is developing a strong support zone between the price levels of US$46,600 and US$48,500. It is precisely this price level that bitcoin whales have used in recent days to further increase their BTC holdings.
Currently, the price is just above this region, which means with a high probability that a major upward movement is imminent.
New all-time high only a matter of time
According to Ki Young Ju, CEO of crypto analysis firm CryptoQuant, there are enough stable coins on the crypto exchanges to fuel another price rally. In the crypto market, capital is often stored in stable coins instead of cash or bank accounts because they make it much easier and faster to buy on exchanges. Yu believes that now is the ideal time for long-term investors to buy bitcoin.
Moreover, the narrative around Bitcoin adoption by businesses and institutions has never been stronger. Coupled with the combination of the rapid recovery of the last few days, the declining sell-offs by miners and the extremely high stable coin reserves, there seems to be little standing in the way of a further rise in Bitcoin’s price at the moment.