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Bitcoin narrowly dodges record 10 weeks in the red

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Bitcoin broke its record 9-week closing trend in the red, closing at $29,997 on June 5, just above the $29,422 level needed to be in the green.

BTCUSD chart
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The price of bitcoin is up 5% in the last 24 hours, rising to $31,600 at the time of writing from $29,984.

Can the green trend continue?

BTCUSD weekly analysis
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The rise in prices also marks the breaking of the $30K resistance for Bitcoin for the second time in the past two weeks. The price had previously jumped to nearly $32k at the end of May before dropping below the $30k mark.

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Bitcoin is still above the $30k resistance, trading at $31,300 at press time.

Miners prefer to sell on the back of an uptrend

Bitcoin miners started selling their holdings during the last market downturn, which is unusual as they tend to hold and wait for the bear market to start selling.

Despite the recent rise in Bitcoin prices, sales have not stopped. This may indicate that miners consider the price to be temporary and expect bitcoin to fall further.

However, the selling trend could also be taken as a cautionary approach to the macro environment, as it is also a smart move to keep mining going.

“Low BTC prices and high competition have affected the profitability of the mining industry. The recent sales should probably cover the day-to-day expenses of companies,” Juan Pellicer, Research Analyst at AT Block– said Cryptooshala.

“There may be concerns that this selling activity will cause downward pressure on the price of Bitcoin. The reality is, however, that while some miners have decent bitcoin holdings, the amount they trade on a daily basis is negligible compared to the total supply of bitcoins. This is currently less than 1% of total trading volume.”

“In addition, the overall change in miner stocks over the past month has been small. In total, 7,469.53 BTC were sold out of the initial amount at the beginning of the month.”

Still bullish in the long term

Bloomberg Intelligence Senior Commodities Strategist Mike McGlone spoke about the market late last week, noting that the current market reflects the biggest inflation in 40 years, the first in most people’s lives. However, he also said that once this period is over, Bitcoin will skyrocket and become the best asset in the world.

McGlone said both Bitcoin and the S&P 500 returned to their 100-week average at the end of May for the first time in two years. The Nasdaq broke one of its standout supports when Bitcoin broke its $30,000 support. He argued that an uptrend in the market would begin when one of these indicators found its bottom and turned up. He expected it to be Bitcoin itself, which he believes could reach a value of $100,000 by 2025.

Regardless of bitcoin price volatility, McGlone said that a single bitcoin will be worth about $100,000 in 2025 and compared bitcoin to the early years of Amazon and Gold, which showed similar volatility during their lifetimes before they became reliable assets without risk.

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