The increase in Mining Position Index (MPI) above 2.7 points reveals greater activity in Bitcoin miners transferring a significant amount of Bitcoin in exchange compared to the annual average.
The movement suggests that miners may be liquidating some of their reserves; Sales pressure will be introduced that could affect the currency’s prices in the short term.
Despite this signal, current MPI is well below the extreme levels that have historically marked the end of the bullish cycle of the Bitcoin market.
Next is a graph showing the dynamic relationship between Bitcoin (white line) and MPI (blue line).
An analyst known as avocado_onchain explains in a report shared by encryption that this behavior follows a repetitive intra-cycle pattern. Temporary corrections or lateral movement of prices precede a more pronounced rebound.
Therefore, investors need to closely monitor the miners’ departures towards the exchange. If these transfers continue, short-term revisions will be enhanced and affect the price of Bitcoin in the market.
However, Bitcoin’s mid-term and long-term bond perspective is driven by solid, robust and fundamental market dynamics and remains intact.
“With a solid foundation and a favourable macroeconomic environment, Bitcoin is well positioned to continue his rising career,” analysts say. As the market digests these movements, data suggests Bitcoin may be preparing for a new bullish impulseif the current conditions persist.
A key factor is the significant accumulation by small investors who have acquired 19,300 BTC per month. This is a number well above the 13,400 BTC produced monthly by miners. This dynamically reduces the circular offer of Bitcoin and generates purchase pressure that enhances the value of the currency, as reported by encryption.
This has sparked interest from an increasing number of institutions that incorporate Bitcoin as a reserve asset for the Ministry of Finance.
Currently, Bitcoin prices are in the consolidation stage after reaching the historical maximum of $123,135. This lateral behavior occurs at a price range that was previously unknown until recently. Despite temporary fluctuations, it reflects the strength of the market.
In this context, the encrypted report highlights that long-term investors must focus on their strategy and avoid responding to short-term oscillations.