Bitcoin Faces 10% Drop, Miners Accumulate Amid Buying Pressure

Bitcoin's recent price fluctuations have sparked interest among traders and investors, who are rallying despite declining metrics. The cryptocurrency's price has dropped by nearly 10% in the past month, largely due to a sharp decline in transfer volume. Transfer volume has fallen from a peak of $87 billion to $42 billion, signaling reduced trader interest and lower market activity. However, experts believe that current accumulation trends by miners suggest an upcoming price rally for Bitcoin.

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.

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

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.