Bitcoin Miners Acquire $420M BTC in 15-Days —$45k Price Rally Signal?
Key Insights:
- Bitcoin (BTC) price closed the week at $42,300, up 4% from the weekly low of $40,555 recorded in the aftermath CPI data released on Wednesday.
- Bitcoin miners have increased their cumulative holdings by 10,000 BTC (~$423 million) in the first half of December.
- Based on historical accumulation trends, the rising demand among miners could see the bulls regroup at $41,300 as the crypto markets slip into a consolidation phase.
Bitcoin (BTC) price closed the week at $42,300, up 4% from the 7-day low of $40,555 recorded in the aftermath of core inflation data released on Wednesday. On-chain data analysis reveals how the Bitcoin miners have taken advantage of the consolidation phase to acquire over $420 million worth of BTC.
Will the miners’ accumulation trend strengthen the BTC support enough to avoid a drop below $42,000?
Bitcoin Miners Enter Accumulation Trends Despite Price Consolidation
Bitcoin price delivered a classic see-saw performance this week, bouncing between thee 7-day peak of $44,000 to a bottom of $40,500.
The core inflation (CPI) figures spooked retail traders into a panic sell off on Wednesday. However, the US Fed’s decision to hold key rates constant restored investors’ confidence, triggering an early rebound across global risk assets markets on Dec 13.
Looking beyond the price charts, Bitcoin miners appeared to have remained unfazed amid the crypto market volatility. According to data compiled by IntoTheBlock, aggregate Bitcoin reserves held by recognized Miners stood at 1.91 million as of November 30.
Interestingly, the latest readings shows that Bitcoin Miners’ have acquired an additional 10,000 coins this month, bringing their cumulative balances to 1.92 million BTC as of Dec 16.
Miner Reserves is an on-chain metric that tracks the total number of coins held by recognized crypto mining firms and mining pools. Miners are regarded as major stakeholders within a blockchain ecosystem. They dedicate resources and specialized equipment to secure a the network in exchange for a block rewards.
Investors often interpret it as a bullish signal when miners accumulate their block rewards during volatile market conditions. It indicates that the miners remain committed to securing the network and are bullish on the native coin’s short-term price prospects.
When valued at the current Bitcoin price of $42,400, the miners’ newly-acquired 10,000 BTC coins are worth approximately $424 million.
By keeping this large volume of coins off the open market it could ease the downward pressure on Bitcoin price in the days ahead.
And if strategic stakeholders also buy into the miner’s bullish disposition, the BTC price rally could get back on track.
BTC Forecast: Can Bitcoin Price Reach $45,000?
Bitcoin price is in prime position to retest $45,000 in the coming weeks, given the bullish disposition among the miners and corporate entities. In addition to these on-chain signals, BTC technical indicators also confirm this bullish outlook.
At press time, Bitcoin is currently trading at $42,434. The Bollinger Bands iindicators in the chart below illustrate that, despite the week-long volatility, BTC remains above the 20-day Simple Moving Average (SMA) of $41,332.
In simple terms this bullish alignment means that on average, Bitcoin traders are currently willing to pay more for BTC, than they would have offered 20 days ago.
The the bulls capitalize on this growing positive momentum to trigger an upswing above $45,000. However, beyond that level the upper Bollinger Band at $46,000 could pose major initial resistance.
On the downside, the bears could wrestle control of the Bitcoin markets if BTC fails to hold the $40,000 support level.
However, as observed last week, the bulls will likely regroup around the 20-day SMA of $41,300 to avert any major downswing.
