Bitcoin Metrics Decline but Accumulation by Miners and Investors Suggest Potential for Price Rally

• Bitcoin’s recent price fluctuations signal a potential shift as traders and investors rally in the face of declining metrics.

• Despite a near halving of transfer volumes, miner accumulation and active buying from institutional investors may pave the way for a bullish trend.

• According to COINOTAG, experts believe that current accumulation trends by miners suggest an upcoming price rally for Bitcoin.

Bitcoin’s price may be poised for a rebound as transfer volumes drop but mining activity increases—insights reveal potential upward momentum in the market.

Key metrics decline, but hope remains

Bitcoin’s price has dropped over 9.83% in the past month, according to CoinMarketCap, largely due to a sharp decline in transfer volume.

Transfer volume has fallen from a peak of $87 billion to $42 billion—nearly half in the past month. Such a decline signals reduced trader interest, leading to lower market activity.

Source: Glassnode

Further analysis shows that Bitcoin’s recent upward move has been driven by buying activity between the $82,590 to $85,150 price levels, with about 625,000 BTC purchased during this period. The market is observing significant selling pressure as it approaches the $95,400 to $97,970 supply zone, where 1.44 million BTC in sell orders are stacked.

If the asset fails to gain more momentum heading into this region, a further decline could follow.

Will Bitcoin gather the needed momentum?

Buying activity in the market suggests Bitcoin’s momentum could continue growing. This is supported by the Miner’s Position Index (MPI), which indicates whether miners are buying or selling based on token movement.

Currently, the MPI has turned negative, dropping as low as -1.5, meaning miners have stopped selling and are accumulating Bitcoin—a signal that could trigger a rally in the coming trading sessions.

Source: CryptoQuant

Alongside miners, U.S. and Korean investors are adding to buying pressure, as reflected in the rising Coinbase Premium Index and Korean Premium Index, both remaining above the neutral zone of 0. When both metrics rise, it suggests increased Bitcoin buying activity on exchanges dominated by these regions.

Historically, these investors have played a key role in Bitcoin’s price direction, and if that trend holds, the asset could be gearing up for a major upward move.

Derivative traders aren’t silent

Derivative traders are also responding to Bitcoin’s recent 24-hour surge, with the aggregated Funding Rate across multiple cryptocurrency exchanges rising.

The Funding Rate determines which side of the market pays a premium to maintain price parity between the spot and Futures markets. Currently, longs are paying the fee, confirming their commitment to the bullish trend.

Source: CryptoQuant

If the market continues aligning with this bullish phase, Bitcoin could rally toward the $95,000 region, where a major supply level awaits.

Conclusion

In summary, while Bitcoin faces challenges with declining transfer volumes and significant selling pressure at higher price ranges, the collective buying momentum from miners and key investors could signal a turning point. The pathway to potential price gains remains contingent on sustained buying interest and overcoming critical resistance levels.