The price of BTC may be preparing for a bullish trend because miners are now selling less than what they mine.
From March till now, BTC price has increased by about 170% having recorded a value of $9,700 recently from $3,600 in March. Despite this achievement, some factors indicate that BTC may be preparing for another increase in price.
The factors that indicate that BTC may soon appreciate even more are: more outflows in exchanges, support for miner revenue and more people holding BTC instead of selling.
Analyzing these three factors
When Bitcoin exchanges are busy giving out Bitcoins, it means that more people are interested in keeping the coins with them for a long time.
The users send their Bitcoins to a personal wallet because they don’t find it needful to trade for cash anytime soon.
Lower Bitcoin exchange outflow leads to higher revenue for the miner. As more BTC is mined, the miners get more profit.
If the cost of mining BTC reduces, miners will be less willing to sell off BTC. However, a few may still decide to sell but in less than usual quantities.
Last week, it was discovered that miners did more of mining BTC than selling. While a total of 6,694 BTC was mined, only 6,384 BTC was sold. This resulted into a positive balance of 310 BTC.
Byzantine General, a crypto trader stated this:
“Exchange outflow keeps going up. Miner revenue is finding support. Miners are holding more and more. So even if the chart doesn’t look very exciting, I wonder where bears think the big sell pressure is gonna come from.”
In summary, there are more miners who are not looking at selling BTC at the moment. The miners are also not encouraging sales in the market and more people are interested in storing their coins. These factors indicate that the bullish trend will continue.
There may be an exception
The major reason why BTC price will not fall anytime soon is that miners are not willing to sell this period. However, they may change their mind if BTC price changes abruptly and mining becomes difficult.
If BTC should remain in the bullish zone in the third quarter of 2020, then the price must be maintained at over $10,000 and less sales from miners should be recorded on a daily basis.
Once this is set, it will be an indication that the resistance which had been in place for several years has been broken and both investors and miners are confident that the market is set for a bullish trend that will last long.