Yesterday, Bitcoin soared through the crucial $16,000 trendline, breaching a vital resistance level. While being traded at $16,255, market participants, especially Bitcoin miners, seemed to project renewed interest in the coin.
According to the blockchain analysis platform, Glassnode’s latest charts, Bitcoin balance in miner wallets appeared to have started “stabilizing” after experiencing a large drop in early November. This was crucial primarily because BTC’s price had maintained a fairly consistent upward trajectory, hence a significant decline, in terms of BTC in miner wallet, as it neared $16K could be indicative of a brief sentiment of high sell-pressure.
However, the figures started to have “stabilized” meaning the short-lived FUD that triggered the drop might have potentially subsided while Bitcoin gears for toppling the final technical barrier on the road towards establishing new peaks.
Previously, Bitcoin miners started offloading their holdings prompting the cryptocurrency to halt its intense rally that had been going on for several weeks. This could be attributed to the fact that the miners who closely watched their holdings appreciate swiftly in terms of price started reaping profits off the table. While the drop was not too damaging, it, however, did kickstart a consolidation phase for the coin.
With the latest trend reversal, it can be noted that Bitcoin’s chances to witness a slow mid-term uptrend or any potential sell-off in the coming days appeared to be highly unlikely especially considering the current strength seen in the cryptocurrency’s price movement.
Bitcoin Miner Revenue Surges To Record Levels
Over the past couple of months, Bitcoin’s price has reached its highest levels since early January 2018,. This, in turn, prompted a huge prospect for the miners in the network. Bitcoin mining went on to become more profitable as a result.
According to data compiled by Blockchain.com, BTC miner revenue surged all the way to $20.89 million on the 4th of November. This level was not seen since Bitcoin’s third halving in May this year, Hence even as the event went on to reduce the miner block reward from 12.5 BTC to 6.25 BTC, that did not stop the miners from having one of their best years. Notably, the previous high was recorded in September 2019, during which the miners’ block reward was twice as much as now.