Bitcoin’s climb past the critical $95,000 mark has triggered a divide in market sentiment. While miners are showing renewed confidence, derivatives traders are positioning for a pullback. This divergence raises key questions about whether Bitcoin is gearing up for another rally—or bracing for correction.

Miners Accumulate as Confidence Builds

The most notable reaction to Bitcoin’s breakout came from miners. On-chain data from CryptoQuant reveals a sharp uptick in BTC miner reserves starting April 29, shortly after BTC closed above $95,000. This reserve had plunged to a yearly low of 1.80 million BTC just a day earlier, but the trend reversed as miners began accumulating again.

Miner reserves reflect the number of coins held in miner wallets and are often viewed as a sentiment gauge. Rising reserves suggest miners are holding onto their coins, expecting higher prices ahead—rather than selling into the rally.

Positive Netflow Underscores Bullish Sentiment

Further strengthening the miner narrative is the shift in miner netflow. Since April 29, more BTC has been moving into miner wallets than out, a clear indication that miners are in accumulation mode.

Bitcoin Miner Netflow. Source: CryptoQuant

This behavior typically aligns with long-term optimism. Miners, who often operate on thin margins, tend to liquidate when prices appear unsustainable. Their choice to hold now suggests they see more upside in the near term.

Futures Market Sends Mixed Signals

Despite the bullish undertone from miners, BTC’s derivatives market tells a contrasting story. Since early May, the coin’s funding rate has remained in negative territory, currently sitting at -0.0056%.

BTC Funding Rate. Source: Coinglass

In perpetual futures contracts, a negative funding rate means short traders are dominant, paying longs to maintain open positions. This indicates a broader market expectation of a pullback or correction, despite BTC’s spot price strength.

Key Levels to Watch: Rally or Rejection Ahead?

This growing divergence between miners and traders puts BTC at a critical crossroads. If accumulation continues and demand picks up, Bitcoin could aim to break resistance at $98,515 and potentially challenge the $102,080 zone.

BTC Price Analysis. Source: TradingView

However, if trader skepticism proves correct and selling pressure mounts, BTC could slide back below $95,000, with $92,910 as the next support level.