Ki Young-Ju, chief executive of Sunday research firm CryptoQuant, said three key indicators at the chain pointed to an increase in the price of Bitcoin (BTC).
Measures pointing to the bull market include less selling pressure from miners, lower stock market inflows, and declining stock market reserves.
It was said on July 20 that:
“Indicators in the chain said: AL. Miners aren’t selling, there’s no significant bitcoin inflow from whales to exchanges. Reserves of all exchanges saw their lowest level of last year a month ago and remain at that level. ”
Miners sell less Bitcoin
Miners have sold more bitcoin than their miners in the past 12 weeks, according to bytetree data. In the past three months, miners have created 7,393 Bitcoins and sold 7,3365 Bitcoins. This 72-Bitcoin difference is considered a low selling pressure, especially in the long term.
There may be two reasons for miners ‘ reluctance to sell Bitcoin in recent months.
First, the karma rate neared a record high. This means that although the mining industry has halved, it continues to mine extensively.
The latter may indicate that the cost of mining is relatively low. When high difficulty correction is experienced, the cost of bitcoin mining also increases. The robustness of the Karma rate suggests that bitcoin mining is still highly profitable.
If miners aren’t selling large amounts of Bitcoin for a long time, there’s less selling pressure on Bitcoin.
Low stock market entries
Low stock market entries often mean there are fewer investors selling cryptocurrencies in the market. Rather, stock market problems show that more and more investors are moving Bitcoin into their personal wallets.
June, however, was a reasonable time to invest in Bitcoin when the whales made money from the exchanges. That means the whales are predicting a big rally in the short term.
Since March, inflows on bitcoin spot exchanges have fallen significantly. Entries range from 3,700 to 17 thousand bitcoins, according to CryptoQuant data. That December May was 6,800 – 38 thousand bitcoins.
Stock market reserves continue to decline
On the other hand, bitcoin stock market reserves have been declining since April. Stock market reserves have declined from 2.56 million to 2.44 million in the past three months.
While the 4 percent drop appears small, stock markets have not fallen below 2 million in more than a year.
