Will miners be the driving force behind Bitcoin reaching a new peak?

The price of Bitcoin has steadily increased, adding about 4% in value over the past seven days. This trend reflects improved market sentiment and growing optimism among investors.

As the upward momentum is gradually solidified, important on-chain indicators are signaling the potential for sustainable price increases in the upcoming trading sessions.

Bitcoin miners hold on to their holdings

Bitcoin miners continue to accumulate, with reserves reaching the highest level in a week, at 1.8 million BTC.

Bitcoin Miners' Reserves | Source: CryptoQuantThe miners' reserves track the amount of coin held in the wallets of miners. This figure represents the reserves that miners have not sold. When this index decreases, it means that miners are transferring coin out of their wallets — often to sell, indicating an increasing pessimistic sentiment towards BTC.

Conversely, when this index rises, miners are holding onto more of the coins they have mined. This often reflects confidence in the potential for future price increases and a positive market outlook.

In addition, the BTC Flow index from miners to exchanges has decreased, highlighting the accumulation trend of miners on the network over the past seven days. According to data from CryptoQuant, this index has sharply decreased by 10% during that period.

The BTC flow from miners to exchanges | Source: CryptoQuantWhen the BTC flow from miners to exchanges decreases, miners limit their sales and hold their coins off the exchanges. The reduction in selling pressure indicates growing confidence in the price of BTC and may help strengthen the upward momentum of this coin.

In addition, last week, the weekly inflow of capital into spot Bitcoin ETF funds turned positive, reversing the outflow trend from the previous week. According to data from SosoValue, during the period from August 4 to August 8, the inflow of capital into these funds totaled 247 million dollars.

Total net inflows into Bitcoin spot ETF | Source: SosoValueThis shift indicates that institutional buying demand is recovering and the market sentiment towards BTC has changed. Institutional investors still believe that this coin will continue its uptrend and are increasing their direct exposure through ETF funds.

Can Bitcoin surpass the threshold of 118,851 dollars to head towards 120,000 dollars?**

The combination of increased buying demand from institutions and miners' confidence is reinforcing the potential for BTC to soon return to levels above $120,000. However, to achieve this, the "king" of digital currencies must first overcome the resistance level at $118,851.

Bitcoin price chart | Source: TradingViewConversely, if the accumulation momentum slows down, the price may revert to a downward trend and fall to the level of 115,892 dollars.

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