Bitcoin miners are adjusting their strategies and reducing risk as the price of BTC remains above the crucial threshold of $30,000. The cryptocurrency starts the first week of July with a sense of relief for traders, maintaining its strength despite the bears. While Wall Street gears up for the Independence Day holiday and minimal macroeconomic data is expected in the United States, external factors may influence BTC price performance in the coming days and weeks.
Short-term BTC Price Predictions
Short-term BTC price predictions range from an upward continuation to $40,000, according to traders Jelle and Crypto Ed, who both see positive market structures. However, there are differing views on whether the current month marks the peak of Bitcoin’s 2023 recovery. On-chain monitoring resource Material Indicators highlights the role of Bitcoin whales in maintaining the price range, indicating that large investors have been buying dips and distributing through the range.
Attention is also shifting towards the U.S. banking sector, with regional banks struggling and Bank of America facing bond-buying losses. This situation draws comparisons to previous bank implosions that sparked the March Bitcoin bull run.
Bitcoin Miners and Hodlers
Bitcoin miners have been actively sending BTC to exchanges, surpassing levels seen in April 2021 when BTC/USD reached $58,000. Despite these sales, miner balances show a slow overall uptrend since the beginning of 2023, and network fundamentals remain strong with high hash rates and relatively stable difficulty levels.
In contrast, long-term Bitcoin hodlers are holding firm and refusing to sell their positions, even as prices increase. The illiquid supply of Bitcoin is at elevated levels not seen except during the bear market of 2022, indicating strong hodler conviction. Sentiment among market participants remains indecisive, as reflected by the Crypto Fear & Greed Index, which fluctuates between neutrality and greed depending on Bitcoin’s interaction with the $30,000 mark.
Conclusion
Overall, Bitcoin’s price performance in the coming weeks will likely be influenced by factors such as miner behavior, market sentiment, and developments in the U.S. banking sector. Traders remain cautiously optimistic about potential upward movements in BTC price, while long-term hodlers maintain their conviction.