Bitcoin has been on a roll, rising over 124% this year, but things haven’t been so rosy for miners. Miners, the folks who use powerful computers to verify Bitcoin transactions and get rewarded with new Bitcoin, have been struggling. Their earnings have plummeted, and many are selling their Bitcoin to stay afloat.
So, why hasn’t this massive selling pressure crashed Bitcoin’s price?
The answer lies in a key metric: the 100-day exponential moving average (EMA). This indicator tracks the average selling activity of early Bitcoin miners over the past 100 days. It’s like a gauge of how much selling pressure there is in the market.
Recently, some of the earliest Bitcoin miners, who have been holding their coins since the very beginning, decided to cash out. They moved a combined 250 Bitcoin, worth about $15.9 million, to new wallets. This caused a lot of buzz in the crypto world, but it didn’t have a big impact on Bitcoin’s price.
Why? Because the 100-day EMA is at its lowest point of the year. This means that even though these early miners sold a significant amount of Bitcoin, it didn’t add much to the overall selling pressure.
In other words, the market is already used to miners selling, and this recent activity hasn’t changed the game.
Bitcoin’s price is still holding strong, and it’s even pushing towards new highs. It’s currently trading around $63,000, and a break above $64,000 could send it soaring towards $70,000. However, if buying pressure weakens, it could slide back down to $54,000.
So, even though miners are struggling, Bitcoin is still going strong. The market is resilient, and the 100-day EMA is a good indicator that Bitcoin’s price is likely to stay stable, even with some selling pressure from miners./p>
