Bitcoin Miners’ Position Index (MPI) Signals Bearish Crossover
According to recent on-chain data, the Bitcoin Miners’ Position Index (MPI) has formed a death cross, indicating a potential end to the asset’s rally.
Understanding the MPI Indicator
The MPI is an indicator that measures the ratio between miner outflows and the yearly moving average (MA). Miner outflows refer to the amounts miners transfer out of their wallets, usually for selling purposes. This metric helps determine if miners are deviating from their normal selling patterns.
Interpreting the MPI Death Cross
A death cross occurs when the 365-day MA of the BTC MPI crosses above the 90-day MA. In the past, this crossover has been bearish for Bitcoin’s value, leading to significant declines. The recent formation of this death cross suggests that the current rally may be coming to an end.
The Importance of Coming Weeks
While the death cross is still in progress, its completion in the coming weeks could solidify the bearish signal. If the 90-day MA reverses its trajectory quickly, the death cross may not form. However, if current trends continue, it may confirm a bearish outlook for Bitcoin.
BTC Price Update
Despite the potential bearish signal, Bitcoin has experienced strong bullish momentum in the past 24 hours, reaching $28,300.
Hot Take: Is Bitcoin’s Rally Over?
The formation of a death cross in Bitcoin’s MPI raises concerns about the end of its rally. While it is still in progress and requires further confirmation, this bearish signal suggests that caution may be warranted in the coming weeks. However, recent bullish momentum in BTC price demonstrates the unpredictability of cryptocurrency markets. It remains to be seen whether the death cross will be confirmed or if Bitcoin’s rally will continue.
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