Miner reserves are ultra-low! Analyst: Bitcoin may be bottoming in "this range", and a big reversal surge is coming?

Market - 2024.06.21 - By Foresight News
Bitcoin prices continued to Fluctuation in a narrow range and Miner reserves fell to their lowest level since 2021, analysts predict that Bitcoin may have bottomed out and expect higher in the medium term.
Contents

01
Bitcoin miner reserves fall to the lowest level since 2021
02
"Keep patience"
03
Prepare to reverse the situation
On Thursday, the cryptocurrency market saw fluctuations, with Bitcoin continuing to trade narrowly. According to Bitpush data, Bitcoin once reached a high of $66,455.5 during the day, but the bulls lost momentum again, falling to a daily low of $64,656.72 after noon. As of the time of writing, it has returned to above $65,000, with an almost zero 24-hour volatility.

Altcoins are also tending to stabilize. In the past 24 hours, among the top 200 tokens by market cap, Worldcoin ($WLD) led the gains with an increase of 11.82%, followed by Fetch.AI ($FET) with an increase of 11.29%, and SingularityNET ($AGIX) with an increase of 9.46%. ZKsync ($ZK) led the declines with a decrease of 9.81%, followed by Flare ($FLR) with a decrease of 6.41%, and JasmyCoin ($JASMY) with a decrease of 5.57%. The total market capitalization of cryptocurrencies is currently 2.36 trillion US dollars, with Bitcoin's market share at 54.15%, almost unchanged from yesterday.

In the stock market, the S&P 500 index and the Nasdaq index both fell sharply in afternoon trading. At the close, the S&P 500 index fell slightly by 0.25%, the Nasdaq index fell by 0.79%, and the Dow Jones index rose by 0.77%.

Bitcoin miner reserves fall to the lowest level since 2021

According to CryptoQuant's data, Bitcoin miner reserves have fallen to the lowest level since 2021. Miner reserves indicate the amount of Bitcoin held in associated miner wallets, which represents the reserves that miners have not sold yet. The data shows that the current miner reserves are approximately 1.82 million BTC, compared to around 1.87 million BTC at the beginning of the year. When miners start selling, the supply will increase, which may lead to a depreciation in price, depending on the market demand for tokens. However, CryptoQuant charts show that miner reserves have been declining since October 2023, while the price of Bitcoin has risen by 150% during the same period.

In addition, CryptoQuant data also shows that the daily trading volume of Bitcoin miner OTC trading has reached the highest level since the end of March.

"Keep patience"

On-chain data platform Santiment said that on-chain indicators show that retail investors are "mostly fearful or uninterested in Bitcoin, as the price is between $65,000 and $66,000."

Santiment released an article stating that in the current market downturn, patience will be rewarded: "This prolonged state of FUD is rare, as traders continue to capitulate, and the fatigue of Bitcoin traders, coupled with whale accumulation, usually leads to a rebound, which is beneficial for those who are patient." Ready to reverse the situation

Some analysts believe that Bitcoin may have bottomed out and could be preparing for another breakthrough.

Cubic Analytics founder Caleb Franzen said that although the bulls of Bitcoin failed to break through the resistance level recently, they have done a good job in defending the key support level, and he is waiting for a breakthrough of the $66,000 level.

BecauseBitcoin CEO and founder Max said on X platform that Bitcoin and Altcoins are just repeating the trend of each previous cycle.

He said, "As Bitcoin surges towards its previous cycle's high, we usually see poor performance of altcoins. In the previous two cycles, altcoins have experienced significant declines at this stage, just like the current situation. It takes time, but this kind of panic and fear towards altcoins is common, and the current situation is no different. I will wait for new evidence to appear."

Analyst Michaël van de Poppe believes that Bitcoin has bottomed out within the current range and is expected to rise in the medium term. In his X post, he wrote, 'Bitcoin may have found support between $63,000 and $65,000 and is accumulating upward momentum. As a result, with Bitcoin's dominance declining, altcoins are starting to show stronger strength, and a reversal is imminent.'