Bitcoin Taps $53K Amid Profit-Taking by Miners
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The recent bull run witnessed in Bitcoin (BTC) peaked at its highest point since May 12, near $53K in the Asian session today. On-chain analytics company Glassnode noted that the positive momentum emanated from institutional investors’ activities. The analytics provider stated that:
“As renewed optimism follows positive price action, on-chain transaction volumes are showing continued growth in dominance by large, institutional sized capital.”
Meanwhile, Glasnode revealed in its weekly on-chain report that BTC miners have started cashing out profits amid a goodish hash rate recovery. Reports show that the Bitcoin hash rate has recovered by more than 50% since the mass migration of miners from China in June. Glassnode added that:
“The increase in hash-rate is likely a combination of previously obsolete hardware finding a second lease on life, and miners in China successfully relocating, re-establishing, or re-homing their hardware and operations.”
Additionally, mining revenue has increased back to its July 2019 levels of Scott $380,000 per Exahash. Miners began cashing out profits following BTC’s reemergence above the $50K mark.
Profit-taking by miners has its benefits for the benchmark cryptocurrency as most of that revenue gets reinvested in mining hardware and operational expansion. That said, the minor sell pressure got adequately absorbed by the market as miners’ net position change touched neutral levels again.
Key Bitcoin Levels to Watch — September 7
Just as predicted in our recent analysis, BTC recorded a parabolic run to the $52K area, peaking near $53K, from the double bottom emergence at the $46,500 support. However, the primary cryptocurrency has since fallen to the $50.5K area due to the immense bearish pressure at the $53K mark.
Nonetheless, a golden cross pattern appears to be forming for BTC on our daily chart. A golden cross involves the movement of a faster moving average line above a slider one (in this case, the 50 and 200 SMAs). The completion of this pattern could spur a bull run back to the $60,000s.
In the meantime, BTC needs to hold above the $50K price point to preserve its bullish bias.
Meanwhile, our resistance levels are at $51,400, $52,500, and $53,000, and our key support levels are at $50,500, $49,500, and $48,000.
Total Market Capitalization: $2.28 trillion
Bitcoin Market Capitalization: $959.6 billion
Bitcoin Dominance: 41.9%
Market Rank: #1
