Bitcoin has continued its bullishness as it surged its price above the USD 23,000 level, a positive signal amid miners cutting sales of their mined coins. On-chain flows highlighted by Bitifinex analysts indicate that the amount of Bitcoin moved from Bitcoin mining addresses to wallets owned by cryptocurrency exchanges has fallen to a multi-year low.
Selling power low, favorable for a BTC rally
According to a Bitfinex analyst, Bitcoin miner sales are at their lowest point in three years. The report claims that the sale could be a sign that Bitcoin miners are in the mood to collect coins as they expect the price hike of the flagship cryptocurrency.
The rejected Bitcoin sale of mining companies means low sales pressure from these market players. Therefore, it signals bullishness for the broader market.
However, the analysts stated that the recent rise in Bitcoin price could signal a correction as investors try to recoup their gains amid the current price surges.
The analysts identified large wallets (>$1 million) as the main contributor to Bitcoin accumulating. They went on to say that such portfolios, as well as major market players, are the ones creating the buying pressure that follows the FTX saga and a series of bearish events widely seen last year.
The analysts mentioned that since the second week of January, the number of wallets has increased by $1,000 and $10,000 worth of Bitcoin. The analyst further acknowledged that retail investor trading activity had accompanied the uptrend.
According to the figure above, Bitcoin’s current low selling pressure coincided with the lowest selling in November last year. The current low level signals a green (bullish) indicator for the cryptocurrency.
When miners sell more BTC, it is implies a bearish for the coin value. Conversely, when mining companies have no selling drive, it suggests a rising trend for the crypto market.
Today’s Bitcoin price
Bitcoin is up nearly 40% this month, trading at $22,909, up 1.48% on Tuesday. The crypto is trading at levels not seen since the fall of the FTX exchange. BTC volume stands at around $26.82 billion, up 12.78% in the past 24 hours, according to Coinmarketcap.
As highlighted above, the rise in Bitcoin value can be attributed to whales committed to collecting coins amid rising prices. The bullish trend can also be seen in the global crypto market cap, which is trading at a higher level, according to Tradingview, around $1.06 trillion, up 1.27% in the past 24 hours.
Featured image of Unsplash, chart from TradingView.