Bitcoin miners have started to accumulate BTC again as the hashrate of the bitcoin network rebounds to new highs. Miner accumulation is seen as a bullish sentiment and indicates the price could see an uptrend. The declining rate of miners sending their Bitcoin holding to exchanges comes at a crucial time when the top cryptocurrency has broken out of the equilateral triangle pattern on the 1-day long-term chart.

advertisement

Bitcoin price is currently trading at $39,231 with $40,000 being the immediate resistance. A break above $40K could help it retest $45K soon.

$BTC

Good morning world. pic.twitter.com/TZWFP60Swu

— The Wolf Of All Streets (@scottmelker) June 3, 2021

The market crash in the second week of May saw bitcoin price retrace 50% from the top, leading to a new 3-month low just above $30K. The price crash was attributed to an over-leveraged market aided by several FUDs leading to panic selling and exchange malfunctions.

The market sentiments have turned bullish again as Bitcoin mining FUD was dissolved with North American miners push for cleaner mining alternatives and Bitcoin network hashrate has returned to pre-Fud levels.

Bitcoin On-Chain Metrics Indicate Strong Fundamental

The price consolidation under $40K might soon end as the market looks set for another bullish burst after 3 weeks of dominant bearish sentiment. The on-chain fundamentals haven’t deteriorated even during this bearish phase as the exchange outflows have continued and institutional demand has maintained strong support.

The adoption of the top cryptocurrency has continued as Wisdom Tree launched a Bitcoin ETP in Europe and Paxful launched a retail commercial Bitcoin payment solution in the form of Paxful Pay-E.

Google uplifting its 2018 ban on crypto advertisement targeting US customers yesterday, which means crypto exchanges and service providers can now use Google’s targetted ads to advertise their services. All these factors combined the top cryptocurrency looks set to begin its price retrace.

About Author

Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.