Bitcoin wobbles in a critical support zone. New indicators are bullish and suggest the rally will continue.
Lex Moskovski, CIO of Moskovski Capital, shared data from Glassnode showing that a trend among Bitcoin miners has reversed. Since the beginning of March, this sector has started to increase its Bitcoin sales.
According to the graph shown by Moskovski, Bitcoin has moved sideways as miners’ BTC sales increased. The December 28 rally was preceded by a large BTC buy in this sector. Although buying levels still remain low, Moskovski said:
The miners have stopped selling and on average have accumulated again. It seems they expect the price to go higher.
The Bitcoin supply on the exchanges continues to decline
A change in miner’s mood coincides with an increase in the amount of bitcoin that left the exchange. Moskovski also records 9,077 BTC pulled from the Coinbase platform. Analyst Willy Woo believes institutes are responsible for the outflow of BTC from exchanges:
Coins being picked up from exchanges (this is mainly Coinbase which is a US company, and to the extent of the payout, it is likely an institutional buyer who has not yet been announced). (…) Coins move to strong hands with minimal sales history.
In addition, Bitcoin traders who short-circuit BTC have become “cray-cray”. To support this, Glassnode is seeing a decline in BTC supply on the exchanges, analyst William Clemente said:
This is what absolute scarcity looks like. It doesn’t take a genius to see what happens. Supply / Demand 101.
The above events coincide with an estimated $ 6 billion bitcoin options expiring on Friday. With a high accumulation on the Deribit platform, including the Chicago Mercantile Exchange and FTX. When the $ 4 billion worth of bitcoin options last expired, the price of the cryptocurrency rose 80%.
In the long term, the macroeconomic outlook continues to favor the cryptocurrency with a possible $ 3 trillion debt issuance by the U.S. government. On the miners’ activity, Michael Saylor, CEO of MicroStrategy said:
It is reasonable that publicly traded Bitcoin miners are more likely to become net buyers of BTC than sellers.
Bitcoin is trading at $ 54,747 with slight gains of 0.2% on the last day. On the 7-day chart, BTC posted losses of 2.0% and 3.0% over the last month.