Bitcoin (BTC) price struggled to extend its rally above $104,000 on Friday, as the world’s largest cryptocurrency showed signs of exhaustion after a sharp vertical move in late April.
The cryptocurrency is now consolidating just above the $102,000 mark, with key technical levels and on-chain trends suggesting that the broader uptrend remains intact despite the minor setback.
One factor that appears to have contributed to the recent cooling in Bitcoin price is selling pressure from miners. The Miners’ Position Index (MPI), an on-chain indicator that tracks miner outflows relative to their one-year average, spiked above 2.0 in early May.
Historically, MPI values above 2.0 have been associated with distribution events, and past instances of similar spikes in MPI coincided with local price pullbacks. For example, in late February and early March, large outflows from miners corresponded with a drop in Bitcoin price from the $84,000 to handle the $70,000 support.
This renewed activity from miners suggests that operators may be securing some profits as Bitcoin hovers near cycle highs, which could be putting some pressure on bullish momentum.
At the same time, macroeconomic conditions continue to improve, which could help sustain the crypto's rally. A trade agreement between the U.S. and China, announced on Friday, sparked a broad recovery across risk assets.
The S&P 500 gained over 3% on the news, while major European and Asian equities also rose sharply. This easing of global trade tensions bodes well for institutional appetite for Bitcoin, which is evident in sustained ETF inflows and shrinking exchange reserves.
Despite the short-term pressure from miner selling and the technical resistance at $104,000, the broader trend for Bitcoin remains constructive. On-chain metrics such as realized price and long-term holder behavior suggest that the rally is being driven by structural demand, not speculative excess.
This stands in contrast to the crypto bull market of 2021, which was characterized by extreme levels of on-chain derivatives activity and leveraged products, setting the stage for a volatile and risky market.
