Why Bitcoin Miners May Affect Ongoing BTC Rally?

The world’s largest cryptocurrency Bitcoin (BTC) has delivered a strong price pump moving closer to $25,000. As of press time, BTC is trading 3% up at a price of $24,678 with a market cap of $472 billion.

On the other hand, Bitcoin miners continue to book profits with every rise in order to cover their operational costs. As per the Glassnode data, the Bitcoin hash-ribbons remain inverted signaling the existing stress within the mining industry.

But Glassnode adds, “the faster 30DMA is starting to stabilize, suggesting some improvement to miner financial conditions”.

Courtesy: Glassnode

As the BTC price rallied over $22,000 over the last two weeks, we have seen a fall in the Bitcoin miner balance. This is because the miners want more liquidity. This ongoing selling could probably affect the BTC price rally going further. As Glassnode explains:

“Over the last 2-weeks, aggregate miner balance has declined by approximately 4.7k $BTC. This suggests aggregate miners are taking some exit liquidity during the recent price rally, likely to shore up balance sheets and hedge risk”.

Bitcoin Miner Distribution to Exchanges On A Decline

Furthermore, Glassnode adds that Bitcoin miner stress peaked in June 2022 when the BTC price tanked under $20,000. But the miner distribution to the exchanges has been on a decline in recent weeks. This goes on to suggest that while the stress remains in the industry, the worst of the times could be behind us.

Courtesy: Glassnode

As the Bitcoin price breaches $25,000, it will open the gates for the rally up to $30,000. However, Galaxy Digital CEO Mike Novogratz said that he doesn’t see this happening anytime soon. But here’s what popular trader Ali Martinez has to say. He notes:

The RSI on the daily is signaling a break out, but the 100MA at $24,900 is acting as resistance. Once this level is breached, $BTC could gain the strength to head toward $28,000 – $29,000. Invalidation at $23,000.

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