On-chain analysis shows Bitcoin miner reserves seem to be closing in on the ATH seen in May, as the BTC bull rally continues.
Bitcoin Miner Reserves Reach Close To May ATH Levels
As pointed out by a CryptoQuant post, the BTC miner reserves seem to be on the rise, and look to be close to the levels seen during the 9 May all-time-high (ATH).
The BTC miner reserves is an indicator that shows how many coins miners are holding in their wallets. More the value of this metric, less the selling pressure for miners in the market.
Related Reading | S2F Creator Beckons Beginning Of Second Leg Of Bitcoin Bull Run
On the other hand, there is some selling pressure among miners if the indicator is on the decline. A lack of selling pressure can be bullish for the crypto as miners generally sit on large piles of coins. If they start selling, the price can possibly immediately go down.
Now, here is how the Bitcoin miner reserves chart looks like right now:
The BTC miner reserves seem to be going up
As the above graph shows, while the current value of the indicator is still less than the one seen during the May ATH, it’s close enough.
This rise in the Bitcoin miner reserves could prove to be positive for the current Bitcoin bull rally as miners seem to be expecting higher prices still.
On the topic of miners, it looks like the BTC hashrate is also gradually moving up. The below chart highlights this trend.
The BTC hashrate slowly moves back up
After China’s crackdowns on Bitcoin mining, the global hashrate quickly went down. As miners have been relocating elsewhere, the hashrate is slowly recovering.
However, it looks like the hashrate is still below previous levels so it’s going to take some time before enough miners have restarted their operations.
At the time of writing, Bitcoin’s price floats around $45.8k, up 19% in the last 7 days. Over the past month, the cryptocurrency has accumulated 35% in gains.
Here is a chart that shows the trends in the price of the coin over the past 3 months:
Bitcoin wobbles around the $46k mark | Source: BTCUSD on TradingView
Over the past couple of weeks, BTC has enjoyed a sharp uptrend as the coin successfully breaks past $45k. At the moment, it looks like BTC is testing the $46k level as the crypto zig-zags around the price mark.
Related Reading | Three White Soldiers: The Signal That Shows Bitcoin Bulls Are Preparing For Battle
It’s unclear if BTC can keep the momentum up, or if it will drop down. But if the miner reserves are anything to consider, signs seem to be positive for the bull rally.
Featured image from Unsplash.com, charts from CryptoQuant.com, TradingView.com