Bitcoin miners have been actively selling their holdings following the halving effect, based on on-chain data. This continuous selling pressure is not showing any signs of abating, and it is feared that there may soon be very little Bitcoin left to be sold in the market. The halving event, which halves the block reward for miners, often leads to a phase of miner capitulation. This means that when mining becomes unprofitable, miners are forced to sell their Bitcoin to cover operational costs, thus contributing to the current selling pressure in the market.
Several analytics platforms have reported on-chain data indicating a prolonged phase of miner surrender. The Bitcoin hash ribbons, regarded as indicators of miner capitulation and recovery stages, are still reflecting stress. This suggests that miners are still struggling with the reduced block rewards and are continuing to sell off their holdings. Consequently, this has hindered Bitcoin’s price from making a significant recovery and reaching previous highs, keeping the market under constant bearish pressure.
The relentless selling pressure from miners is cited as one of the primary reasons why Bitcoin has been facing challenges in breaking above key resistance levels. The failure to stay above the 50 EMA and 100 EMA, while approaching the 200 EMA, indicates the market’s bearish sentiment. Despite the relative strength index showing that Bitcoin’s price is neither overbought nor oversold, miners’ ongoing selling activities continue to influence the market direction.
Funding rates on major exchanges like Binance, OKX, and Bybit provide insights into the levels of long and short interest in Bitcoin, reflecting traders’ sentiments and possible price movements. The relatively neutral funding rate for Bitcoin suggests a balanced outlook on trading. However, the market remains significantly impacted by miners’ sales, highlighting the pivotal role they play in shaping Bitcoin’s price dynamics. The conclusion of this capitulation stage and the reduced selling pressure from miners could be contingent on various factors, such as a substantial increase in Bitcoin’s price to make mining profitable once again.