Yesterday, July 21, when the bitcoin price suddenly increased from $9100 to more than $9350 for a few minutes, traders are very carefully watching the movements of bitcoin. And today, market analysts say the trend change.
Writes Cointelegraph, CEO CryptoQuant saw three indicators which, in his opinion, point to a change in the bearish trend, and upward trend, as less investors have to sell BTC.
According to Ki Yang-Yu (Ki Young-Ju), General Director of research company CryptoQuant, three key it Chine (on-chain) indicator now signal the growth of bitcoin prices, Bitcoin (BTC).
Indicators that may indicate the bull market is less pressure on sales from the miners, low exchange-traded income and reduce currency reserves.
July 20, Ki noted:
“The status of he Chine indicators: BUY. Miners do not sell (based on MPI, the outflow of miners). There is still no significant revenues to BTC from whales. All exchange reserves last year reached its lowest level in a month and remain low.”
The price of bitcoin. Source: TradingView.com
ByteTree data show that miners have sold a little more than nominali over the last 12 weeks. Over the past three months, miners have extracted 7293 BTC and sold 7,365 BTC. Net reserves -72 BTC is low pressure on sale on the part of the miners, especially over a long period.
In the absence of appetite miners sell bitcoin in recent months, there are two possible reasons.
First, the speed VTS Hasrat almost at the highest level. This means that the mining sector continues aggressive mine BTC, despite halving.
Second, it suggests that the cost of mining is relatively low. When there is a record high complexity of the adjustments, the cost of mining BTC is increasing significantly. Stability indicator Hasrat shows that Bitcoin miners are still quite profitable.
When miners do not sell large amount of bitcoin over a long period, pressure on sales is reduced. Miners and crypto currency exchange are the two most important external source of pressure for the sale of cryptocurrency.
Low stock proceeds generally suggests that the market has a fewer investors or traders who sell cryptocurrency. Exchange flows indicate that more and more investors transfer personal bitcoin wallets.
In Jun Ki explained that a reasonable period for investment in bitcoin is when the whales are sending the funds from the exchanges. This shows that whales are predicting continued growth for the near future. He said
“Buy BTC when the whales send bitcoin from the exchange. The market typically starts four months after the average withdrawal from exchanges reaches record levels.
Since March, the exchange flow of bitcoin has declined. CryptoQuant data show that income varies between 3700 and 17,000 BTC BTC. In may, revenues ranged from 6800 to 38000 BTC BTC. Arrivals in the spot exchange have been declining.
The decline in exchange earnings. Source: CryptoQuant
Foreign exchange reserves are reduced
Meanwhile, the exchange reserves has declined significantly since mid-April. For the last three months foreign exchange reserves declined from $2.56 m to $2.44 million
Despite the fact that the decline in the reserves to 4% may seem insignificant, the exchange reserves never dropped below 2 million more than a year.
Exchange reserves of bitcoin decreased to 2.44 million BTC. Source: CryptoQuant
The totality of such factors as low pressure for sale from the miners, reduction of stock reserves and low revenues may indicate the beginning of the accumulation phase. As retail investors, and miners sell less BTC than usual, and institutional investors accumulate BTC via Grayscale.
On the website CoiNews we wrote that the price of bitcoin (BTC) for the first time since July 13 exceeded $9400, but traders are still cautious optimistic forecasts.
The portal CoiNews informed that after it was recently reached a record high level of Hasrat bitcoin last difficulty adjustment is changed by 9.89%, which gave on 13 July to a new record high of more than 17.3 trillion.
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