Bitcoin’s price action has been somewhat stable recently, as the bulls and bears fight it out for momentum.
The price has mainly been fluctuating between $10k and $11k since dropping from $12,200 at the start of the month.
And as each breakout creates excitement, the selling pressure has been too much, ensuring the price is brought back down.
The last push saw Bitcoin break $11k before getting quickly rejected and a fall back down to $10,300.
The price recovered a bit, before a push up and it has been in the $10,600-$10,900 range since Friday.
But the market is looking undecided even as most traders are bullish long term.
If past indicators are anything to go by, however, there’s one metric that suggests we could be set for a big bull run.
The Miner Position Index Is Signaling a Bull Run
With a large part of market movement dependant on miners, a key indicator from the mining sector is signalling that we could be on the cusp of a major move to the upside.
The Miner Position Index (MPI) has recently crossed 0, and going by past occasions we can see that it has kicked off a few major bull runs in the past.
The Miners Position Index is a measure of what miners are doing with their newly mined coins.
A negative number indicates that miners are holding their Bitcoins instead of selling them, while a number above 2 indicates that miners are selling all their newly mined coins immediately.
But the interesting part is that the Bitcoin price tends to do well when miners are sending them to exchanges to sell.
This is probably down to the fact that miners are hodling in weak markets, and prefer to unload as the price strengthens.
The 30-day average for the MPI has provably resulted in significant past gains, pretty much every time the metric has gone positive.
Will it happen again? Well, Bitcoin has just set a new record of 63 days above $10,000, beating the previous record set back in December 2017-January 2018.
And while this doesn’t signify a push higher, it shows the strength of the bullish sentiment, even during a seemingly flat September.
The Miner Position Index Could Trigger a Significant Push Higher
While past metrics don’t repeat, they do rhyme, and as TA bulls and bears fight it out, many macro investors are bullish on Bitcoin long and short term.
Bitcoin miners play a significant role in running the Bitcoin network, and their hodling and selling activity does give us an insight into the likely direction of the Bitcoin price.
There’s also more bullish sentiment now than at any time during September, and few would argue that we won’t see a push higher soon.
Will it be significant? Well the further we get into the price cycle, the bullish case for Bitcoin strengthens.
Author: Pablo Clarke