As the crypto community watches with bated breath, Bitcoin’s price trajectory points northwards, with recent figures breaching the $47k mark. The countdown to the fourth Bitcoin halving event is ticking away, with only 70 days on the clock, stirring a bullish sentiment that could see the cryptocurrency reclaim its $50k glory.

Miners Ease the Selling Throttle by 25%

On the 9th of February, the price of Bitcoin soared to a high of $47,661, a number not seen since the buzz of the BTC ETF approval in January. This surge is widely believed to be fuelled by increased institutional interest and a strategic reduction in selling by Bitcoin miners in anticipation of the upcoming halving event.

With the halving event slated for April 2024, where the reward for Bitcoin mining will halve from 6.25 to 3.125 BTC, miners, akin to their counterparts in Litecoin (LTC) and Dogecoin (DOGE), are stockpiling in preparation. This behavior has manifested in a notable decrease in miner-to-exchange transactions, signaling a drop in selling pressure.

On-Chain Data: A Window into Miners’ Confidence

An analysis of CryptoQuant’s miner-to-exchange chart reveals a 25% reduction in transactions from miners to exchanges, from 278 down to 208, in the first week of February. This pullback is interpreted as a positive sign for the asset’s price, lessening new token dilution and demonstrating miners’ confidence in Bitcoin’s near-term value.

This trend of decreased exchange deposits has been consistent since October 2023, coinciding with a significant price rally in Bitcoin to about $48,000. If this pattern persists, it could signal further increases in price as the halving event draws nearer.

Breaking Through Resistance: The Path to $50k

Current on-chain data suggests that the forthcoming halving event is propelling Bitcoin on an upward path. However, a resistance level at $48,500 looms ahead, as indicated by IntoTheBlock’s global in/out of the money (GIOM) data. A cluster of 717,040 addresses that acquired Bitcoin at $48,335 could pose a challenge to further gains.

A successful break through this resistance could potentially trigger a surge past $50,000, a milestone Bitcoin has not seen since 2021. Conversely, a dip below $40,000 could activate a defensive buying spree among investors who acquired Bitcoin at $42,672, potentially leading to a swift market correction.