Crypto News

Bitcoin On-Chain Data Shows Sharp Drop In Sell-offs, Is A Christmas Rally Ahead?

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Bitcoin price struggles to show a strong upside move as traders anticipate more BTC price fall due to miner capitulation and selloffs by whales. However, on-chain data indicates a sharp fall in selloffs by miners and whales.

The Bitcoin price currently trades near $17,000. The U.S. PCE data for November comes in at 5.5%, which fell from 6.1% in October. As a result, the BTC price falls slightly with respect to volatility in the U.S. Dollar Index (DXY).

Bitcoin Price To Rally Above $17,000 Before the New Year 2023?

According to on-chain data, the Bitcoin Miner to Exchange Transactions for All Miners and All Exchanges metric indicates a fall in selling pressure from miners. While miners have sold their Bitcoin (BTC) holdings to recover from financial constraints, miners are trying to hold onto their Bitcoin holdings.

Moreover, miners’ transactions to crypto exchanges have continued to drop since the start of the year. Interestingly, the transactions were more when the price was considerably higher.

However, it doesn’t mean miners can’t sell more BTC holdings at the moment. Historically, when transactions go as low as the previous bear market cycles, the possibility of Bitcoin price forming a bottom is higher.

Bitcoin Miner to Exchange Transactions for All Miners and All Exchanges. Source: CryptoQuant

 

The next thing restricting the Bitcoin upside momentum is selloffs by whales. However, on-chain data indicates retail investors are buying more while whales are selling. It is causing Bitcoin to become more distributed on the network. Instead of whales having most of the BTC supply, it’s better to have more investors having it.

Also Read: Here’s How Much Your $1000 Invested In Bitcoin 10 Years Ago Will Be Worth Today

Crypto Analysts Are Also Bullish

Crypto analyst CredibleCrypto predicts the Bitcoin price can move above $17K before the 2022 end. He asserts that Bitcoin is holding the 16.3K-16.5K range and BTC dominance has begun moving up. He also completely agrees with BitMEX co-founder Arthur Hayes that the Bitcoin price can hit $100K by the 2023 end or early 2024.

Moreover, popular analyst Rekt Capital suggests traders to keep an eye on the Bitcoin price closing the month above $17,150, which will start a bullish upside move in 2023.

Also Read: 3 Reasons To Invest Bitcoin(BTC) As We Approach 2023

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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