Bitcoin Price Insights:
- Bitcoin price broke above $35,500 on Thursday, November 2, 2023, as the bulls further pushed the BTC yearly peak closer to the $36,000 mark.
- On-chain data has revealed that BTC miners took advantage of that rally to sell over 2,000 BTC.
- Despite the Miners’ sell-off still in motion, technical indicators indicate that the BTC price rally is not over yet.
Bitcoin (BTC) price reached another 2023 price peak of $35,800 on Thursday as the bulls made spirited efforts to push the rally closer to $40,000. However, on-chain data has shown that the recent sell-off by BTC miners was a major factor behind the price rejection at $36,000.
Bitcoin Miners Sold off 2,190 BTC as Price Crossed $35,500
Bitcoin bulls re-asserted their dominance in the markets this week, pushing the 2023 price peak to $35,800 on Thursday. However, on-chain data readings show that Bitcoin miners and node validators had other plans. As the bullish traders anticipated flipping $36,000, BTC miners and node validators capitalized on this week’s price rally to sell off a large chunk of their reserves.
According to data culled from Glassnode, the BTC miners held a total of 1.832 Million BTC in their cummulative reserves as of Nov 2. But as the price rally kicked, the chart below illustrates how the sold-off 2,190 BTC, bringing their current total reserves down to 1.830 million.
As the name implies, the Balance in Miner Wallets metric, tracks the real-time changes in the total number of BTC coins deposited in the wallet controlled by recognized Bitcoin mining companies and mining pools.
Typically, when Miners’ Balances drop, it is a bearish signal, indicating that they have dumped a significant amount of coins on the market.
The current reading depicted in the chart above clearly shows how they started selling once price crossed $35,412 on Wednesday November 1. As since then, they have not stopped selling.
Drawing an inference from this chart, BTC price will likely remain in consolidation phase this weekend. Until the miners switch into accumulation mode again, the bulls will struggle to force another signifiant leg-up toward $40,000
BTC Price Forecast: Consolidation around $34,000
From an on-chain perspective, Bitcoin price is likely to consolidate around $34,000 this weekend. However, technical analysis indicators suggest that despite the miners’ selling frenzy, the bulls will mount a support buy-wall at $34,000 to prevent a major price reversal.
On the upside, Parabolic SAR (Stop and Reverse) identifies potential reversal points in an ongoing market trend. As of November 4, the Parabolic SAR indicator dots points toward $33,400 which is well below the current BTC price of $34,700. This alignment is a clear indication of a growing bullish trend.
Hence, if the miners halt the sell-off there’s the bulls could spring into action to force a move toward $37,000.
This article was originally posted on FX Empire
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