Bitcoin has found itself in price discovery after repeatedly breaking record highs over the past week. The price rose an impressive 38% in less than ten days, highlighting the overwhelming bullish momentum that has captivated the market. BTC is consolidating below the $93,400 mark as traders and investors anticipate the next move.
Key data from CryptoQuant reveals an interesting trend: BTC miners, including a Satoshi-era miner, have started selling significant amounts of BTC. Notably, 2,000 BTC were moved, with some sent to exchanges, indicating active profit-taking among miners.
This behavior suggests that while demand remains strong, increasing supply from miners could create a near-term headwind, potentially keeping Bitcoin’s price below its recent highs.
If this selling trend continues, the price may continue to consolidate around current levels before attempting another breakout. However, broader market sentiment remains optimistic, driven by strong institutional interest and favorable macroeconomic factors.
While miner activity adds a layer of complexity to the price action, it also underlines it Bitcoin’s resilience in absorbing sell-side pressure during his historic rally. Traders will be watching these developments closely as BTC moves through its next phase of price discovery.
Bitcoin Supply Keeps Price Stuck (For Now)
Bitcoin’s impressive bullish price action has finally cooled in recent hours as minor profit-taking has occurred by short-term holders and miners. The market took a brief pause after a period of aggressive buying, but it appears the overall bullish momentum remains intact.
Key data shared by CryptoQuant’s head of researchJulio Moreno shows that BTC miners have continued to sell at this stage. In one particularly notable event, a Satoshi-era miner moved 2,000 BTC coins that had been mined in 2010 and had never been moved before. Some of these coins were transferred to exchanges, indicating active profit-taking.
This activity suggests that while Bitcoin’s price may be temporarily pressured by miner selling, this could be a healthy consolidation phase rather than a sign of weakness. Such profit-taking is common after extended rallies and could keep the price at current levels for a short period of time.
However, the broader trend remains bullish as demand from institutional investors, including those using BTC ETFs, continues to grow. Furthermore, long-term investors, who have shown resilience in previous market cycles, are unlikely to sell at current levels, providing strong support.
BTC could quickly resume its upward trajectory if these forces continue to outweigh selling pressure from miners. While the recent cool-off may bring a temporary lull, demand fundamentals suggest Bitcoin is well-positioned to reach new highs once this profit-taking phase is over.
BTC consolidates below ATH
Bitcoin is trading at $89,400, following a 7% pullback from its recent all-time high (ATH) of $93,483. After an aggressive push for new price discovery, the price is now consolidating below this level. This consolidation phase will determine whether BTC will continue its upward trajectory or undergo a deeper correction.
If Bitcoin remains above the $85,000 mark in the coming days, a rise to new highs can be expected, with the $90,000 level acting as the next resistance. Market sentiment remains bullish and strong support around $85,000 could act as a springboard for a challenge to the previous ATH.
However, the price could test lower demand zones if Bitcoin fails to reclaim the $90,000 mark and falls below the $85,000 support level. The next potential support is around $82,000, where buying pressure could increase. A break below this level could signal a deeper correction, but bullish momentum is still intact as long as the $85,000 support holds. Traders will be watching these levels closely to determine Bitcoin’s near-term direction.
Featured image of Dall-E, chart from TradingView