Bitcoin Miners’ Position Index (MPI) Momentum Has Recently Formed a Crossover That Has Historically Been Bullish for the Asset’s Price

Bitcoin MPI Has Seen Its 90-Day MA Cross Above The 365-Day As explained by an analyst in a CryptoQuant Quicktake post

Bitcoin (BTC) has seen some weakness in its price over the last few days, but the asset may soon be due for another leg up. This is according to a key metric that has historically signaled the start of extended bullish periods for the cryptocurrency.

Bitcoin Miners’ Outflows Show Bullish Momentum

The metric in question is a derivative of the Bitcoin Miners’ Position Index (MPI). As its name suggests, the MPI is an on-chain indicator that tracks the ratio between the total miner outflows and their 365-day moving average (MA).

Naturally, the miner outflows here are the amounts of BTC (in USD) that are being transferred out of the wallets belonging to the network’s validators.

When the MPI is high, it means the miners are making more outflows than usual. The main reason why this cohort usually sells their tokens is for covering their operational costs. Hence, this kind of trend can be bearish for the asset’s price.

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Conversely, the indicator being low suggests that the miners are withdrawing a lower number of coins than the average for the past year. Such a trend could be a sign that this group is preferring to hold for now.

An interesting derivative of the MPI is the MPI Momentum, which is the 90-day MA of the indicator divided by its 365-day MA. This metric highlights any changes in the momentum of the miner outflows.

Bitcoin Price May Soon Rally Again As Key Metric Shows Bullish Trend on ChainAnalysis.com

As you can see from the above chart, the 90-day MA of the Bitcoin MPI has just crossed above the 365-day one. This pattern has historically signaled the start of an extended bullish period for the cryptocurrency.

The last time that the two MAs of the MPI displayed this trend before the latest instance was back in December 2022, following which BTC went on to hit a new all-time high (ATH) a month later.

Bitcoin Price Analysis

At the time of writing, BTC is trading at $102,500, showing a slight gain of 0.5% in the last 24 hours and a 6% loss in the last seven days.

The relative strength index (RSI) on the daily chart is around the 45 level, which shows that the asset has some room remaining in this cycle before miner selloff leads to a top.