The price of Bitcoin has risen by 25% since April:
positive signals are coming from mining companies
The price of Bitcoin has risen 25% since its lows on April 9, surpassing the $96,500
barrier in early May, in light of reduced market volatility and a decline in the supply
of Bitcoin on trading platforms, along with an increase in liquidity accumulation.
Analyst “Robert Breedlove”
believes that what is happening goes beyond superficial price movement, pointing
to bullish signs lurking in mining economics and long-term investor behavior.
According to his analysis :
- the average cost of producing Bitcoin at mining companies
- which is considered a historical indicator of the market bottom
- now shows levels that suggest the beginning of a new upward wave.
Assets rarely trade :
in a rational market for less than their cost of production
which often leads to miners withdrawing, supply falling further, and prices rising.
“Breedlove”
- also cited data from the “Blocker” platform
- indicating that the current break-even level for miners
- has reached a new low, supporting expectations of further rise.
In addition :
the movements of long :
term investors confirm the positive indicators, as during the past 30 days
they purchased about 150,000 additional bitcoins
which increases the possibility of a supply shock.
In addition :
- whales purchased approximately
- $4 billion in Bitcoin during
- the last two weeks of
April :
in parallel with renewed flows to Bitcoin exchange
traded funds, which reflects increasing institutional interest.
Regarding :
the available supply in the market :
the volume of Bitcoin on exchanges has fallen to its lowest levels in five years
which “Breedlove” sees as a sign of declining selling intention among investors
especially in the price range between $80,000 and $100,000.
On the other hand
the favorable overall environment supports this optimistic outlook.
The strong relationship between Bitcoin and global liquidity in dollars
especially with central banks moving to ease their monetary policies
shows that capital flows towards digital assets may accelerate.