Key Points
- Bitcoin remains strong above $90,000, despite increased selling from miners and profit-taking activity.
- On-chain data suggests a consolidation phase before the next potential breakout.
Bitcoin [BTC] continues to exhibit a bullish momentum, maintaining a strong position above $90,000 and nearing new all-time highs.
Recent on-chain data, however, indicates that bitcoin miners have sold over 3,000 BTC in the past 48 hours, possibly indicating a short-term pullback.
Bitcoin Miners Take Profits
Crypto analyst Ali Martinez recently noted that Bitcoin miners have sold over 3,000 BTC, equivalent to around $273 million, in the last 48 hours. This increase in miner selling typically signals a cooling-off period, as miners, often considered long-term holders, take profits during periods of rapid price growth.
Such behavior is common in strong bull markets and implies that the market may be preparing for a brief pause or a price correction in the near term.
The miner outflow chart showed significant spikes in Bitcoin leaving miners’ wallets, coinciding with the recent price surge.
Bitcoin Stands Strong
Bitcoin’s price has been on a relentless rise, setting new all-time highs multiple times in the past 11 days — a clear testament to its continued bullish momentum, as it stands strong above the $90,000 level.
However, after such a strong rally, the market seems to be entering a consolidation phase, as profit-taking from both investors and miners gains momentum.
Consolidation Phase Ahead?
Bitcoin’s current consolidation phase above $90,000 is a natural and beneficial step following its explosive rally.
Consolidation allows the market to absorb recent gains, shake out weaker hands, and establish a stronger foundation for the next move.
Key support levels, particularly in the $88,000-$90,000 range, will be critical in maintaining the bullish structure.
A drop below these levels could signal increased selling pressure, potentially triggering a deeper correction, while a strong defense of this range may reaffirm market confidence and set the stage for further growth.
Despite short-term selling pressure from miners and profit-taking by investors, Bitcoin’s fundamentals remain robust.
Should Bitcoin sustain these levels, the possibility of a breakout toward $100,000 can become increasingly likely, positioning the ongoing consolidation as a critical stepping stone towards further price increase.
