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The leading cryptocurrency, Bitcoin (BTC), surpassed the $67,000 resistance last week and formed a smaller range. This range reached from the $70,500 resistance to the $66,800 support, and on May 27, BTC was rejected from the highest level of the short-term range.
Expert Commentary on Bitcoin
However, unlike the previous time Bitcoin tested the $70,000 area, things are quite different. The bulls have a much higher chance of maintaining the upward trend. Cryptocurrency analyst and CryptoQuant research head Julio Moreno stated that the profit margin at current market prices is at 3%, compared to 69% in mid-March when prices rose this high.
This situation may imply that the consolidation over the last 10 weeks has eased the selling pressure from profit-seekers. At the same time, high-leverage long and short positions in the futures market have likely been eliminated, paving the way for a spot-focused uptrend.
Miner Activity in BTC
The mentioned situation is a strong bullish signal for the market, especially for investors with a long time horizon. Sellers in the cryptocurrency have decreased, and buyers have had enough time to gather strength for the next rise. The miner position index is the ratio of the total output from miners to the one-year moving average of the total output from miners.
A downtrend in the measurement could be a bullish sign. It may indicate that miners are less willing and less involved in selling. The 14-period simple moving average has reached its lowest level in over four years. This situation could be a sign that miners are unwilling to sell. An uptrend in the measurement could inform investors about a potential peak. The leading cryptocurrency, Bitcoin, is testing the $70,500 resistance, the profit margin has dropped, miners are reluctant to sell, the uptrend is strengthening, and it is spot-focused.
