The world’s largest cryptocurrency Bitcoin (BTC) has delivered a strong price pump approaching the $25,000 mark. At press time, BTC is trading 3% higher at a price of $24,678 with a market cap of $472 billion.
On the other hand, bitcoin miners continue to post profits with every surge to cover their operating costs. According to Glassnode data, Bitcoin hash bands remain inverted, indicating ongoing stress in the mining industry.
But Glassnode adds: “the faster 30DMA is beginning to stabilize, indicating some improvement in miners’ financial conditions.”
Courtesy: Glassnode
As the BTC price surged over $22,000 over the past two weeks, we have seen the Bitcoin miner balance drop. Because the miners want more liquidity. This continued selling could likely influence further BTC price rally. As Glassnode explains:
“In the last 2 weeks, the total balance of miners has dropped by about 4.7k $BTC. This suggests that overall miners are taking some exit liquidity during the recent price rally, which is likely to support balance sheets and hedge risk.”
Bitcoin miner distribution on exchanges down
Furthermore, Glassnode adds that Bitcoin miners’ stress peaked in June 2022 when the BTC price fell below $20,000. But the miner payout to exchanges has been falling for the past few weeks. This further suggests that while the stress in the industry persists, the worst of it may be behind us.
Courtesy: Glassnode
If bitcoin price breaks $25,000, it will open the gates for the rally up to $30,000. However, Galaxy Digital CEO Mike Novogratz said he doesn’t see that happening any time soon. But here’s what popular trader Ali Martinez has to say. He notices:
The daily RSI is signaling a breakout but the 100MA at $24,900 is acting as resistance. As soon as this level is exceeded, $BTC could gain the power to move towards $28,000 – $29,000. Invalidation at $23,000.
Bhushan is a FinTech enthusiast and has a keen sense of understanding the financial markets. His interest in economics and finance draws his attention to the emerging blockchain technology and cryptocurrency markets. He is continuously in a learning process and motivates himself by passing on the knowledge he has acquired. In his free time, he reads thriller fiction novels and sometimes explores his cooking skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.