Bitcoin [BTC] price crosses $87,000, setting the stage for a major price rally

Bitcoin [BTC] is on the rise, crossing into the $87,000 region following a 3.26% rally in the past 24 hours, bringing its cumulative gain to 4.38% over the past week.

Bitcoin [BTC] broke into the $87,000 zone on Thursday, 3 August. The world’s leading cryptocurrency rose by 3.26% in the past 24 hours and by 4.38% over the past week.

Bitcoin has been trading in a limited range for days now, but several observations suggest that this could be setting the stage for a major price rally.

Miners have stopped selling and are now accumulating, while U.S. and Korean investors are also entering the market with more buying pressure. Derivative traders are responding with a positive Funding Rate across exchanges.

Key metrics are declining, but there is still hope

Bitcoin’s price has dropped by over 9.83% in the past month, according to CoinMarketCap. A large part of this decline can be attributed to the sharp decrease in transfer volume.

Transfer volume has fallen from a peak of $87 billion to $42 billion—nearly half in the past month. Such a decline signals reduced trader interest, leading to lower market activity.

According to Chainalysis data, Bitcoin’s recent upward move has been driven by buying activity between the $82,590 to $85,150 price levels, where 625,000 BTC was purchased with some orders filled.

Bitcoin is expected to face significant selling pressure as it approaches the $95,400 to $97,970 supply zone, where sell orders for 1.44 million BTC are stacked.

If the asset fails to gain more momentum heading into this region, a further decline could follow.

Will Bitcoin gather the needed momentum?

Buying activity in the market suggests that Bitcoin’s momentum could continue growing. This is supported by the Miner’s Position Index (MPI), which indicates whether miners are buying or selling based on token movement.

Currently, the MPI has turned negative, dropping as low as -1.5, meaning that miners have stopped selling and are accumulating Bitcoin—a signal that could trigger a rally in the coming trading sessions.

According to CryptoQuant, the MPI reading is heavily skewed, with a value of 0 representing a neutral zone. Values below 0 suggest that miners are selling, while values above 0 indicate that miners are buying.

According to Ben Lilly, a crypto analyst at Legal Block Chain, the MPI is a valuable indicator for predicting market trends.

“When the MPI is negative, it signals that miners are in a strong accumulation phase, which could lead to a bull market. Conversely, when the MPI is positive, it indicates that miners are selling, which could foreshadow a bear market.”

Alongside miners, U.S. and Korean investors are adding to buying pressure, as reflected in the rising Coinbase Premium Index and Korean Premium Index, both of which remain above the neutral zone of 0.

Both metrics measure the difference between spot and futures prices on major exchanges in these regions. A premium exists when derivatives traders are willing to pay more for immediate exposure to Bitcoin.

Historically, these investors have played a key role in Bitcoin’s price direction, and if that trend holds, the asset could be gearing up for a major upward move.

Derivative traders are also responding to Bitcoin’s recent 24-hour surge, with the aggregated Funding Rate across multiple cryptocurrency exchanges rising.

The Funding Rate determines which side of the market pays a premium to maintain price parity between the spot and Futures markets. Currently, longs are paying the fee, confirming their commitment to the bullish trend.

According to Chainalysis, if the market continues aligning with this bullish phase, Bitcoin could rally toward the $95,000 region, where a major supply level awaits.