According to data cited by Bitfinex analysts earlier this week, Bitcoin miners The world’s largest cryptocurrency by market capitalization is slowing down the pace of selling. Citing on-chain data from crypto analytics platform Glassnode, Bitfinex said that B T c Flows from miner wallets to exchanges, said “sales are at a three-year low”.
“This is a possible sign that miners have now either already converted or are in the process of transitioning into a source of buying pressure,” the analyst continued, before adding that miners are “hiding their bitcoins because They expect (the price) to go up further”.
When Bitcoin miners move their BTC to exchanges, it is generally believed that they are doing so in order to eventually sell them. Therefore low miner to exchange flow can be seen as a proxy for low bitcoin miner BTC sales.
Bitcoin miners are tasked with providing computing oomph for electricity of bitcoin Decentralised, permissionless, peer-to-peer and blockchain-based payment network. They are rewarded for their efforts with newly created bitcoins. Miners are one of the most important players in the bitcoin market, thus indicating that selling pressure from this market segment is generally seen as a bullish indicator for the BTC price.
Another sign that the bitcoin bear market is over?
In light of the latest bitcoin rally (BTC is up close to 40% this month and back into the $23,000 region), there has been growing excitement in recent weeks that the bear market of 2022 may now be over. of course, with The bulk of Fed tightening has already happenedRisks are tilted towards easing of financial conditions in 2023 rather than a repeat of the harsh tightening of 2022, a historically bullish macro backdrop for cryptocurrencies.
And the miner for exchange flow at a three-year low is one of several on-chain and technical indicators that are showing positive signs that bitcoin may be entering a new bitcoin market. As discussed in a recent articleA growing confluence of technical and on-chain indicators tracked by Glassnode analysts are glowing green in their “Bitcoin Recovering from Bears” dashboard.
Currently, six of the eight indicators are in line with the start of a market recovery, with the seventh also showing positive signs soon. Elsewhere, bitcoin is currently a “generational long-term buying opportunity” according to six on-chain metrics cited by crypto research-focused Twitter account @GameofTrades_. These metrics include accumulation propensity score, unit-adjusted dormancy flow, reserve risk, realized value, MVRV Z-score and PUEL multiple.
Elsewhere, the widely followed Bitcoin Fear & Greed Index recently moved back into neutral territory (i.e. above 50) for the first time after a long period of fear and extreme panic. A sustainable recovery to neutral often comes at the start of the next bitcoin bull run, such as in early 2019 and again in mid-2020.
An analysis by crypto-focused Twitter account @CryptoHornHairs made the jaw-dropping observation that bitcoin is roughly following in the footsteps of a four-year market cycle that has been in play for more than the past eight years. The analysis suggests that bitcoin could rally for about 1,000 days after bottoming out last November, before entering its next bear market in 2025.
Finally, a widely followed bitcoin pricing model is sending out a similar story. According to the bitcoin stock-to-flow pricing model, the bitcoin market cycle is roughly four years, with prices typically bottoming out somewhere between four-year intervals between “halvings” — bitcoin halvings occur every four years. The year is the event where the mining reward is halved, thus slowing the rate of bitcoin inflation. Past price history suggests that the next big rally for bitcoin will come after the next halving in 2024.
Bitcoin Crypto Related Post