During the past week, dormant miner wallets from the Satoshi era made significant Bitcoin (BTC) transfers, which typically could lead to selling pressure and a price drop. Surprisingly, despite this activity, BTC surged by over 7%, reaching a peak of $64,043 on Friday.
Early Miner Bitcoin Sales Have Minimal Impact as 100-Day EMA Reaches New Low
Five wallet addresses inactive since the early days of Bitcoin moved a combined 250 BTC valued at $15.9 million to new wallets. Despite speculation, these transactions had little effect on Bitcoin’s upward price trend. An analysis by CryptoQuant’s Darkfost explains that the recent outflows from early miners have not influenced the price due to the decreasing 100-day Exponential Moving Average (EMA), which is currently at its lowest point this year.
The 100-day EMA tracks early miner selling patterns over the past 100 days, aiding in trend identification and price momentum detection. Darkfost emphasizes that these recent early miner sales did not alter the trajectory of the 100-EMA, indicating no immediate impact on BTC’s price trajectory.
Therefore, despite the significant outflows, they are unlikely to generate a massive selling pressure affecting BTC’s price in the short or medium term.
BTC Shows Resilience with a 124% Gain Amidst Declining Miner Metrics
Bitcoin continues to outperform despite challenges in mining fundamentals. VanEck’s Bitcoin ChainCheck report reveals a 124% increase in Bitcoin’s Year-To-Date (YTD) value, with market dominance at approximately 56%. However, the report notes a significant 97% drop in the Bitcoin hash price, indicating reduced miner profitability and increased mining difficulty.
At the time of reporting, BTC is priced at $63,146, showing a 0.23% increase in the last 24 hours. Despite this, daily trading volume has declined by 59.99% to $14.1 billion. The $64,000 resistance level presents a challenge for Bitcoin on the daily chart; a breakthrough could lead to a rally towards $70,000, while a lack of buying pressure may see a drop to $54,000.
Featured image from Simplilearn, chart from Tradingview
