3 key indicators show the beginning of a new bullish trend in Bitcoin

According to Ki Young-Ju, CEO of the market research firm CryptoQuant, three key indicators in the chain are currently signaling an upward trend in the price of Bitcoin (BTC).

The indicators that point to a bullish market are Less selling pressure from miners, low inflows and declining reserves of the exchanges.

On July 20, Ki pointed out:

„State of the chain indicators: BUY. The miners are not selling (according to MPI, Miner Outflows. So far there are no significant entries of BTC in the exchanges by whales. All the reserves of the exchanges reached the minimum of the year since one month ago and they remain low „.

BRD’s CEO remembers leading the Bitcoin help line during the early days of cryptomontages

The miners are selling less Bitcoin
ByteTree data shows that the miners have sold a little more than they did in the last 12 weeks. Over the last three months, the miners produced 7,293 BTCs and sold 7,365 BTCs. A net inventory of -72 BTC is considered a low selling pressure by miners, especially over a very long period.

The miners sold slightly more than they did in the last 12 weeks.

There are two possible reasons behind the lack of appetite to sell Bitcoin among miners in recent months.

First, Bitcoin’s hash rate is close to its historic high. This means that the mining sector continues to aggressively mine BTC despite the halving.

Bitcoin aims for $1 billion in liquidation by 2020, as the growth of stablecoins explodes

Second, it suggests that the cost of mining is relatively low. When a record high-difficulty adjustment occurred, the cost of mining BTC increased substantially. The strength of the hash rate shows that being a Bitcoin miner is still very profitable.

When miners do not sell large amounts of Bitcoin over a long period of time, less sales pressure is applied to BTC. Miners are one of the two main external sources for selling pressure in the cryptcoin market together with the exchanges.

Low entries to the exchanges
The low entries to the exchanges generally suggest that there are fewer investors or traders selling crypto currencies in the market. Conversely, exits from exchanges indicate that more investors are moving Bitcoin into their personal wallets.

Bitcoin Network, a P2P Network for the Currency that Changed the World

In June, Ki explained that a reasonable period to invest in Bitcoin is when the whales withdraw their funds from the exchanges. This shows that the whales are predicting a prolonged upturn in the short term. He said:

„Buy BTC when the whales withdraw their Crypto Trader from the exchanges. The bull market usually starts four months after the average withdrawal from the exchanges reaches the annual high.

Since March, entries to the Bitcoin spot exchanges have declined sharply. Data from CryptoQuant shows that entries range from 3,700 BTC to 17,000 BTC. In May, entries ranged from 6,800 BTC to 38,000 BTC.