Bitcoin’s $87K Breakout: An Unsustainable Trend Amid Bearish Signals

Bitcoin is currently facing persistent bearish conditions, driven by significant sales from whales and miners. Although large investor sales have decreased, miners are offloading BTC in large volumes. The Bull Score Model indicates weak investor sentiment at 20, suggesting little chance of a rally soon. Despite this, BTC recently broke out, achieving a peak above $87,500.

Bitcoin (BTC) has faced bearish market conditions recently, exacerbated by selling from large investors. A report from the analytics platform CryptoQuant indicates a slight decrease in daily sales from these large investors, while Bitcoin miners continue to sell their assets at high rates, significantly impacting the market trend.

Since late February, heavy investors, or whales, have been realising losses as Bitcoin’s price declined. This trend followed their profit-taking in January when BTC surpassed $100,000. Currently, daily BTC sales from whales have dropped from 800,000 to around 300,000. Furthermore, the total BTC held by whales has decreased from 3.537 million to 3.500 million, with their monthly accumulation rate declining to 0.5%.

Amidst stagnant prices, miners have significantly increased their selling activity, with notable outflows reaching 15,000 BTC on April 7 during a $74,000 drop. This marked the third-largest daily outflow of 2025. Compounding their situation, the rising Bitcoin network hashrate indicates tougher and costlier mining conditions, leading to a decrease in the average operating margin from 53% in late January to 33% now.

As both miners and whales navigate the current market landscape, BTC is in one of its weakest bullish phases since late 2022. The Bull Score Model, which gauges bullish sentiment through on-chain metrics, remains in a bearish range at 20, suggesting low investor confidence and little potential for a rally. This score has stayed below 50 for the majority of the last 60 days, mirroring patterns seen during previous market downturns.

Despite these challenges, Bitcoin managed a breakout from its recent consolidation phase, reaching a peak of over $87,500 on Monday morning.