⚠️Most traders don't know this, but the stocks of cryptocurrency mining companies often anticipate Bitcoin's movements. Miners hold approximately between 1.9 and 2.1 million BTC, making them the true giants of the crypto market.
The aggregated Market Cap of miners generally forms peaks and troughs before Bitcoin's trend changes, demonstrating just how key and opportunistic these miners are when it comes to BTC's price.
When analyzing this same indicator on a logarithmic scale, we observe the formation of a rising wedge, which, in technical analysis, is a bearish signal that needs to be monitored closely in the coming weeks.
One of our Miner’s Indexes is weighted according to the largest mining companies, meaning that companies with a higher Market Cap have a greater influence on the metric. We really appreciate this metric because it simply and effectively shows strength and weakness, much like analyzing each company individually. In fact, this metric rises or falls before Bitcoin's price, providing an excellent early signal for future trades.
Finally, we have the Miner’s Momentum, which is the multiplication of Market Cap by Hash Rate. This provides clear signals that as both the stocks and Bitcoin’s Hash Rate rise, Bitcoin’s price tends to follow. When this metric declines sharply, it's a sign that the stocks are falling, and the Hash Rate is decreasing, indicating a reduction in computational power, profit-taking, or significant changes in the strategies of these companies.
We would like to know if you use mining data for decision-making, as we have a deep appreciation for the mining space!
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