Last week, several dormant Satoshi-era miner wallets transferred a significant amount of bitcoin (btc). Typically, when miners sell their bitcoin, especially in a significant proportion, this can create selling pressure leading to a price drop. However, despite the recent selling activity by miners, btc rallied by over 7% and reached a high price of $64,043 on Friday.
bitcoin Miner Sales Remain Price Neutral as 100-Day EMA Hits Yearly Low
On Friday, five wallet addresses were last active in the Satoshi era, i.e. the first days after the creation of bitcoin, x.com/lookonchain/status/1837031861819674881″ target=”_blank” rel=”noopener nofollow”>excited A total of 250 btc, valued at $15.9 million, was allocated to new wallets. These wallets had received 50 btc as a block mining reward in 2009.
While these sudden bitcoin transactions generated a lot of speculation in the cryptocurrency community, there was no significant effect on the positive trajectory of bitcoin's price. Commenting on this development, a CryptoQuant analyst with username Darkfost explains that the latest surge in early miner outflows has exerted a neutral price effect due to a steadily falling 100-day EMA.
In this context, the 100-day exponential moving average helps measure the average selling activity of early miners over the past 100 days, and can be used to identify trends and detect price momentum. According to data from CryptoQuant, Darkfost highlights that the latest sales by early btc miners have failed to alter the trajectory of this 100-EMA metric which is currently at its annual low.
Therefore, these outflows, although significant, cannot produce considerable selling pressure that could affect the price of btc now or in the medium term.
btc Price Surges 124% Despite Poor Mining Metrics
In other news, bitcoin has had a splendid price performance amidst poor mining fundamentals. According to the bitcoin-chaincheck-1-year-review-edition/” target=”_blank” rel=”noopener nofollow”>bitcoin ChainCheck Report According to asset manager VanEck, the leading cryptocurrency had gained 124% in value year-to-date (YTD), bringing its market dominance to around 56%.
However, during this period, VanEck explains, bitcoin's hash rate, which measures the amount of revenue miners earn per unit of computing power used to mine btc, had plummeted by 97%, indicating low miner profitability coupled with increased mining difficulty.
At the time of writing, btc is trading at $63,146, reflecting a gain of 0.23% over the past 24 hours. However, its daily trading volume has decreased by 59.99% and currently sits at $14.1 billion. On the daily chart, bitcoin is facing resistance around the $64,000 mark. A decisive break above this level could pave the way for a rally towards the $70,000 range. On the downside, insufficient buying pressure could result in a price drop to the $54,000 level.
Featured image from Simplilearn, chart from Tradingview
