Bitcoin Price Prediction: Is the Bottom in for BTC?

Bitcoin [BTC] has shown remarkable resilience recently, maintaining a position above the $90,000 threshold. Currently, BTC is trading around $92,536, having faced challenges in surpassing the $93,000 resistance level. Recent trends may indicate that we could be on the verge of another rally, potentially signaling the beginning of a broader recovery.

Key Takeaways

Bitcoin is trading around $92,536, attempting to break past the $93,000 resistance.
Miner activity is displaying signs of increased confidence, which historically supports price gains.
Bitcoin's active supply has risen as many holders sold off assets during a period of capitulation.
Sell pressure exists at the $93,000 to $95,000 area, which might hinder Bitcoin's upward movement.

Bitcoin price prediction: Is BTC’s bottom in? Here’s what could come next

Signs of Recovery from Miners

One of the first indicators hinting at a potential Bitcoin rally is the behavior of miners. This group previously contributed to the price drop when the 30-day Mean Hash Rate fell below the 60-day and 100-day moving averages. This trend often indicates decreased miner activity and reduced exposure to Bitcoin, which can negatively affect market prices.

However, this trend appears to be shifting, as miners are regaining confidence, evident from their increasing Bitcoin reserves.

Miners reserve

Source: CryptoQuant

Increasing miner reserves usually suggest less selling pressure, which means there is less Bitcoin circulating in the market, supporting a bullish outlook. Between November 26 and December 5, miner reserves surged to approximately 1.8 million BTC, indicating this positive shift.

Market Influences Beyond Miners

Miners weren't the only group selling Bitcoin. Other traders also offloaded their holdings, enhancing the overall selling pressure on the market. Bitcoin’s active supply—a metric reflecting the number of BTC currently in circulation—saw an increase as both long-term and short-term holders sold off their assets. This period closely coincided with widespread capitulation in the market.

On-chain analytics platform Alphratal pointed out that much of this selling appeared forced and lacked significant technical reasoning.

Bitcoin Capitulation Oscillator

Source: Alphractal

Interestingly, historical data shows that when rising active supply, a declining hash rate, and forced selling converge, it often marks a positive turning point for Bitcoin. In 2021, these patterns emerged, leading to a market bottom followed by a significant rally. BTC seems to be in a similar phase now, having bounced back from around $82,000 to its current levels, suggesting renewed capital inflows and increasing demand.

Anticipated Resistance Ahead

For Bitcoin to maintain its rally, it must navigate the robust selling pressure at current levels. This resistance is particularly prominent within the liquidity cluster between $93,000 and $95,000, dominated by sell orders from traders expecting a pullback.

Bitcoin liquidation heatmap

Source: CoinGlass

Should Bitcoin fail to breach this supply zone, it could face further declines, potentially dropping below the $90,000 mark again. Conversely, if bullish momentum continues, Bitcoin may be poised for a substantial breakout. Currently, historical trends and bolstering miner reserves seem to support the outlook for a possible recovery.

Conclusion

Disclaimer: The information provided here is not financial, investment, trading, or any other type of advice and solely reflects the writer’s opinion.