Reasons Why BTC Price May Enter a New UptrendColin Baseman
According to the crypto market analysts, there might be at least three major reasons why BTC price might be about to enter a new uptrend. The crypto’s price is likely to gear up for a short-term rally. As we see, miners tend to sell less Bitcoin than they manage to mine daily.
The cryptocurrency’s price has increased by one hundred and seventy percent since March. First, it was three thousand six hundred USD and has finally reached nine thousand seven hundred USD. Although BTC has recovered, a range of essential nuances indicates the chance of another uptrend soon.
Most analysts point out three reasons why the crypto may upsurge. This includes increasing exchange outflow. Another reason is miner revenue finding support. The third main reason is the rising number of ‘hodlers’ – these are individuals who choose to keep their investments for longer periods.
A Move up Due to 3 Factors
The BTC’s outflow that traders receive from exchanges sometimes increases. Once this occurs, hodlers decide to keep their currency for a longer term. As a rule, users withdraw BTC since they might consider transferring the crypto to a personal account. What it proves is that investors are less willing to sell BTC in the nearest future.
The BTC’s outflow that participants experience from exchanges may also decline. This usually comes with a recovery in miner revenue. A greater generation of the crypto via mining makes the process more rewarding and profitable for miners.
There is no need to sell the crypto if the operational costs that BTC mining requires are lower. The outflow seems to be coming from miners then.
The diagram below demonstrates that miners sell less BTC than they managed to mine in the past seven days. The difference is three hundred and ten BTC.
Lower BTC sales in the past 7 days. Taken from ByteTree
Some traders report that the outflow continues to increase. The revenue is strong thanks to the support. Users seem to be hodling more willingly. The question is whether there will be pressure to sell since the diagram does not look very optimistic.
Selling pressure hasn’t been strong recently. BTC hasn’t been moving much in the past few days. What market researches expect is a continued rally.
What May Affect the Uptrend
Specialists believe there might appear one variable and that would be more than enough to spoil the potential uptrend. Their expectations may sound quite reasonable and logical considerinthe situation that is now happening in the market.
The market foresees a new cycle of upward move for the cryptocurrency and this assumption comes from miners who do not feel like selling much BTC in the nearest few months. However, the BTC price oftentimes experiences sharp shifts. There might also be difficulties in mining the crypto. These factors may reshape the trend.
The majority of experts who have been dealing with the cryptocurrency industry claim that there is an ideal scenario. Their predictions may come true and bring unexpected changes. They expect a strong rally occurring between September and December this year. This would require the BTC’s price to stay stable over ten thousand USD.
Also, the amount of crypto that miners sell every day should keep declining, too. If what the leading experts describe happens, it would mean that the price of the cryptocurrency broke out of the resistance lasting for a few years and that would indicate to even greater confidence of miners as well as investors. All in all, this scenario would lead to a distinct long-term bull trend market.
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