Hello my fellow bloggers! Today we will check what investors, traders and miners think about BTC price. As always, we will use plenty of charts. Let’s dive in and investigate.
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Bitcoin price is decided on an open market. Yes, it is highly manipulated and unregulated, but it is still a free open market. BTC price is decided by simple supply-demand equation. The more people think BTC is undervalued, the higher the price goes. The question is what people think now? We are at the start of an altcoin season. BTC was growing without any major correction longer than ever (see this article). Are investors, traders and miners happy with the current price?
Traders
We will start with traders. When someone wants to sell Bitcoin and likes the current price, BTC is move to a centralized exchange. In any other case, BTC would be held on wallet (cold storage, hardware wallet and etc.) The chart below shows BTC exchange balance is at a 2-year low. This means traders are not willing to sell BTC right now. In other words, they are waiting for significant price move first.
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Investors
Investors, or people who hold crypto for a long term, share the same feeling for BTC with traders. As you can see on the chart below, long-term holders are not selling their bags. We see some serious profit taking happened in January. Since then sales have significantly decreased. Looks like they are waiting for BTC price to achieve a new all-time high, perhaps $70K or $80k, before they will decide to sell another portion.
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Miners
Miners need to sell Bitcoin not only to take profit, but also to pay the bill for electricity. Miners always sell mined crypto. The chart below shows miners sell minimal amount of BTC. They are accumulating BTC on their wallets. It seems their either expect BTC price to rise soon or try to push BTC price by reducing supply. In any case, miners are not satisfied with the current price as well.
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Conclusion
The data shows all three groups: miners, investors and traders are not satisfied with current price. People don’t want to reduce their bags at current price. Market participants expect the price to go up and plan profit taking at further price levels. For this to come true we need the demand for BTC to increase and this will push the price up significantly.
Other articles you might enjoy
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The week of a whale or how to behave during market deep
Bitcoin and CME futures expiration. What will happen in a few hours?
Disclaimer
I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose.
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Hello @cryptohumster
Great reading and excellent analysis.
We have to wait at the right time.
Thanks for sharing.
Have a great day
Regards.
La verdad muy buen post, pero sabemos que paea todo hay un tiempo, o sea de espera, gracias por compartir.
The BTC market is really interesting, nowadays the economy seems to be sustained in a great part of the world in virtual wallets and cryptocurrencies. The most striking thing about all this is that you can not predict with certainty what is the BTC behavior to make important investment decisions without a study of the market on which we are going to focus.
Thoughtful piece. I believe all sides should not try to be greedy either way.
Interesting reading piece for my Sunday
The value of Bitcoin is governed by demand and supply however one of the basic ideas behind Bitcoin is to free money from the clutches of central banks is priceless.
Enjoy your Sunday and Happy Easter
A great and magnificent analysis, I really congratulate you on that. These small details that are visible and that many analysts do not take into account are very significant, for me what you explain makes a lot of sense and I think it is very prudent to wait for If a significant movement occurs and the bulls go out in a herd, that is going to be the right time.
Thank you very much for sharing this information, because although I am not an expert on the subject, the minimum knowledge I have makes me understand this valuable publication. 👍🏼