Bitcoin (BTC), the top cryptocurrency, recently broke past the $67,000 resistance level and entered a tighter range. This range is defined by a resistance at $70,500 and support at $66,800. On May 27, BTC faced rejection at the upper limit of this range.

Insights from Experts

This time, the situation looks different from previous attempts to break the $70,000 mark. Market dynamics suggest that bulls are in a better position to sustain the uptrend. Julio Moreno, a cryptocurrency analyst and head of research at CryptoQuant, highlighted that the profit margin at current prices is around 3%, significantly lower than the 69% seen in mid-March. This information is available on COINTURK FINANCE for the latest financial and business news.

The reduced profit margin indicates that the 10-week consolidation period has lessened the pressure from sellers aiming to take profits. Additionally, the elimination of high-leverage positions in the futures market might be facilitating a spot market-driven uptrend.

Miners' Influence on Bitcoin

The current market conditions signal a strong bullish outlook, particularly for long-term investors. The number of sellers has decreased, allowing buyers to gather strength for a potential rise. The miner position index, which measures the ratio of total miner output to its one-year moving average, shows a downtrend. This downtrend is a bullish indicator, suggesting that miners are less inclined to sell their holdings.

The 14-period simple moving average for miner output has hit its lowest point in over four years, signaling miner reluctance to sell. Conversely, an uptrend in this measure could signal an upcoming market peak. Currently, Bitcoin is challenging the $70,500 resistance, profit margins have decreased, miners are holding back on sales, and the market is showing strong, spot-focused upward momentum.

Conclusion

Overall, Bitcoin's recent performance indicates a strong bullish trend with decreased selling pressure and miner reluctance to sell. This creates an environment conducive to a potential rise, driven primarily by spot market activity. The market dynamics suggest that the upward trend is strengthening, offering a positive outlook for Bitcoin investors.