U.Today – miners have been actively selling their resources since the halving effect occurred. As the on-chain data suggests, the amount of selling pressure from Bitcoin miners is not abating and at the current rate there will be very little BTC left to sell.
A halving event usually results in a capitulation period for miners as it halves the block reward for miners. This happens when mining runs at a loss, forcing miners to liquidate their Bitcoin holdings to cover running expenses.
Due to the length of this phase, the market is under constant sales pressure. On-chain data from multiple analytics platforms shows this constant churn. An indicator of miners’ surrender and recovery stages, Bitcoin’s hash ribbons continue to show tension.
The hash ribbon chart, which shows a significant period of miners’ capitulation that has not yet been resolved, clearly shows this protracted phase. Sustained selling pressure has blocked Bitcoin price gains from reaching previous highs. One of the main reasons for Bitcoin’s inability to break through significant resistance levels is the relentless selling by miners.
Bitcoin is stumbling to maintain its position above the 50 EMA and 100 EMA as it gets dangerously close to the 200 EMA. The relative strength index, or RSI, at 43.10 indicates that Bitcoin’s price is neither overbought nor oversold, but continued selling pressure from miners is keeping the market bearish.
The varying levels of long and brief interest in Bitcoin are evidenced by funding rates on well-known exchanges such as Binance, OKX and Bybit. These rates reveal trader sentiment and potential price movements. A balanced approach to trading is indicated by Bitcoin’s relatively neutral funding rate.
Sales of excavators continue to have a significant impact on the market. The completion of this stage of surrender may depend on many factors. Miners may not have to sell their shares if there is a significant raise in the price of Bitcoin that makes mining profitable again.
