- Bitcoin breakout above $95K has sparked bullish sentiment among miners, who are now accumulating rather than selling.
- However, traders remain cautious, as negative funding rates in the derivatives market suggest expectations of a near-term price pullback.
Bitcoin Miners Hold Tight as BTC Breaks $95K
Bitcoin’s recent rally above the critical $95,000 level has ignited a tug-of-war in market sentiment, with miners turning notably bullish while traders remain on edge. Data from CryptoQuant reveals that BTC miner reserves—an indicator tracking the number of coins held by miners—have seen a sharp rise after bottoming out at a year-to-date low of 1.80 million BTC.
The turnaround began on April 29, shortly after Bitcoin surged past the $95K mark. Instead of selling off, miners started accumulating coins again, a move often interpreted as confidence in higher prices ahead. Reinforcing this optimism is a positive shift in miner netflows—more coins are moving into miner wallets rather than being liquidated.
Traders Push Back with Bearish Bets
Despite miner optimism, the derivatives market tells a different story. Bitcoin’s perpetual futures funding rate has stayed in negative territory since early May, currently sitting at -0.0056%, according to Coinglass. This negative funding rate suggests that traders are heavily leaning on short positions, anticipating a price correction rather than a continued rally.
In the world of futures contracts, a negative funding rate signals that short-sellers are paying long positions, implying more bets on a drop than a surge. While miners seem to be doubling down on bullish expectations, traders are hedging against a potential retreat below the $95,000 level.
Next Move: Breakout or Breakdown?
This divergence sets up a fascinating battleground. Should miner accumulation continue and demand pick up, Bitcoin could target a breakout above $98,515 and even test the $102,080 resistance zone. On the flip side, persistent short pressure and a dip in buying momentum could see BTC slide back to $92,910.
With both camps dug in, Bitcoin’s next move could be explosive—either fueling the bulls or rewarding the bears. The market is watching closely.
