Bitcoin miners stock up on the currency as a bullish breakout approaches!

News Desk5
2 Min Read

Bitcoin (BTC), the world’s leading cryptocurrency, has been showing significant support and resistance around the $27,000 mark over the past few weeks. This consolidation period is now starting to convince Bitcoin miners that a bullish breakout may be imminent in the near term. On-chain data, provided by Cryptoquant, reveals that Bitcoin miners have added more than 20,000 BTC, which is approximately worth $540 million, to their holdings in the past week.

The high Bitcoin accumulation by miners in the past week comes as the overall mining difficulty exceeded 50 trillion for the first time in history.

Bitcoin Price Analysis

According to a popular crypto trader on Twitter @MikybullCrypto, Bitcoin price has approached a critical level that could yield a possible breakout. Notably, the analyst compared the 2019 Bitcoin cycle to the 2023 price action to come up with the conclusion of a possible upside breakout 

“Price tagging the upper border of the descending channel, and the lower border of the minor ascending channel,” the analyst noted.

As a result, the analyst expects Bitcoin to rally toward the $36k level or even revisit the ATH if history repeats itself.

Key Macro Factors 

As Bitcoin has established itself as a four-year cycle digital asset, it is expected to consolidate around current levels before the next halving. However, several macroeconomic factors may contribute to continued volatility in the Bitcoin market. 

These factors include the growing adoption of cryptocurrencies in Hong Kong, relatively low trading volumes, and ongoing regulatory scrutiny in the United States, among others. Consequently, Bitcoin volatility is likely to remain high in the coming months.

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