Mike Alfred, co-founder and CEO of data analytics outfit Digital Assets Data, recently pointed toward miners as a potential catalyst for recent Bitcoin (BTC) price activity.
“It is tough to say definitively, but it appears as though the miners’ actions are having a direct, immediate impact on price,” Alfred told Cointelegraph on July 1.
“This is especially evident during outlier events like on the 23rd, where we saw miners offload >300% more BTC than they mined that day,” he added, referencing June 23 activity.
Image courtesy of Digital Assets Data
June 18 hosted different behavior
“Rolling MRI (Miner’s Rolling Inventory) has declined significantly since the halving, meaning that miners are holding onto more BTC than they are mining, Alfred said in June 18 comments to Cointelegraph, referencing a notable uptick in Bitcoin’s mining difficulty.
In contrast, MRI flew upward on June 23, Alfred told Cointelegraph on July 1.
On paper, this essentially means greater miner focus on selling, which could be one of the reasons for Bitcoin’s downward price action as of late.
Cheds looks toward indicators
Bitcoin has largely traded sideways for the last two months, although recent pressure slightly favors sellers. After a move up to $9,780 on June 22, the asset dropped in the days following, sitting at a press time price of $9,085, according to TradingView.com data.
“Bitcoin is likely to head for a re-test of the daily MA 200, after breaching, retesting and getting rejected at the upslanting trendline from the March 20 peak, May 10 lows and beyond” CNBC Africa crypto analyst and Twitter personality BigCheds told Cointelegraph on July 2.
The 200-day moving average, or MA, referenced by BigCheds currently sits near $8,360. The trendline of which Cheds spoke acted as price resistance for Bitcoin on March 20, near $6,980, as well as held support on the flipside of the trendline on May 10, near $8,100.
Fairly recently, Bitcoin broke through this trendline to the downside, retesting the level as newfound resistance.
Bitcoin pulled back below $9,000 again today before popping back above the level by press time.
Published at Thu, 02 Jul 2020 21:15:00 +0000