Bitcoin has seen its own share of ups and downs since the beginning of this year. In fact, it recovered massively in the first few months of the year before falling victim to the May Flash crash. It later consolidated for a few months before gradually rising again.
Recently, however, the price of the asset has remained undecided. Immediately after hitting a high of $ 69,000 on November 10, the cryptocurrency began to depreciate. On November 12th, it fell to a level of $ 62.2k before recovering somewhat.
At press time, the king coin was trading at around $ 65,000, up 1.7% on the daily timeframe.
Well, as soon as the price starts to rise, selling pressure creeps into the market. Weak hands start to take profits and that pulls the price down further to some extent.
As for the current Bitcoin market, there is some pressure to sell. However, an integral group from the community – miners – has not yet boarded the train.
Avoid the pressure to sell
Yes, the state of most miner-related metrics seemed to suggest it.
For example, consider the state of the Puell multiple. That metric climbed to 1.9 towards the end of October, suggesting that some miners were selling their coins as Bitcoin’s price broke even and hit its previous ATH.
However, since then that metric has been on a downward trend, forecasting a value of 1.5 at the time of writing, eliminating the sales pressure narrative.
The reading of the Miners’ Position Index confirmed the same. Put simply, this is the ratio of Bitcoin leaving all miners’ wallets to its year-long moving average. Values above 2 usually indicate that miners are doing bulk sales.
According to the data from CryptoQuant, the MPI was in positive territory towards the end of October. However, it crashed soon after and began advocating the accumulation narrative again.
Cumulative miners’ outflows also oscillated around their lows. The miners’ adherence to their HODLings is a clear indication of their confidence in Bitcoin’s long-term prospects. In some ways, it can also be said that Bitcoin’s rally phase has only just gained momentum and the coin is likely to continue to increase its valuation in the coming weeks.
The ASOL has also moved in the lower range, which means that newer participants are the ones who are actively trading and dominating the market. On the contrary, investors and miners cling to their HODLings.
Here’s the catch
Well, to some extent, the miners’ revenue factor has the potential to play spoilsport and turn the tables. According to data from Glassnode, that metric has seen a decrease from what it was in late October.
Miners rely on their revenue to cover their costs to some extent, and the current state of this metric opens the door to miners who need liquidity to sell their HODLings.
At this point it should be noted that Ethereum miners have been making more money lately than Bitcoin miners. If BTC’s mining revenues continue to decline, these miners might consider switching to Ethereum’s boat.
However, with the PoS relocation happening, the Ethereum mining job is just a time-sensitive gig. Indeed, bitcoin mining would remain profitable in the long run.
Ergo, only if the miners resist the urge to sell their HODLings and relocate their boats could the price of Bitcoin continue to rise without major obstacles.