Bitcoin (BTC) has recently struggled to regain its upward momentumremaining in a consolidation phase just above key support at $60,000. Despite reaching an all-time high three months ago, the largest cryptocurrency saw its price fall to as low as $59,500 on Wednesday due to increased selling pressure from miners.

BTC Selling Craze

Ongoing miner’s surrenderthe longest observed since the summer of 2022, i.e. since the FTX implosion, indicates a supply restriction effect caused by the Bitcoin halving.

Cryptocurrency analyst Ali Martinez noted that Bitcoin miners I sold over 2,300 BTC in the last 3 days, which is approximately $145 million.

This selling pressure from miners is contributing to the recent BTC sales by US and German governmentscontributing to downward pressure on the market and keeping prices in the lower range of the broader consolidation zone between $60,000 and $70,000 observed in recent months.

Notably, addresses linked to the German and US governments sent $737 million worth of BTC in various transactions to exchanges including Coinbase, Bitstamp, and Kraken.

As sales pressure As government and mining investments fade over time, market observers expect a potential BTC price rebound, following the typical pattern seen in the post-Halving period when fresh all-time highs are often reached.

Bitcoin Price Outlook

Market Expert Scott Melker draws attention that the market may be approaching a key signal that a close of the daily candle below the $60,300 level could lead to a bullish divergence.

This would involve the daily Relative Strength Index (RSI) breaking out of oversold territory, similar to what happened last August when the price was trading around $26,000.

Melker emphasizes the need to close below the mentioned level, after which there will be a clear upward move of the RSI without making lower lowFor the RSI to fall below its June 24 level, a significant downward move would be necessary.

However, cryptocurrency analyst Andrew Kang highlights the significance of a potential four-month range loss for bitcoin, pointing out similarities to the range seen in May 2021 following the parabolic rally in BTC and altcoins.

Kanga notes that cryptocurrency leverage of over $50 billion is now near an all-time high, compounded by the fact that the market has been in an extended consolidation phase for 18 weeks without experiencing extreme drawdowns as was the case during the 2020-2021 bull run.

Additionally, Kang suggests that the initial estimate of just under $50,000 may have been too conservative, and a more significant reversion to the $40,000 level is possible.

Such a correction would have a significant impact on the market and would likely require several months of volatile or downward price movements before a trend reversal could occur and a bullish trend could form.

At the time of writing, BTC price has reclaimed the $60,350 level after briefly dipping below this key support for further upside moves.

The largest cryptocurrency on the market has erased all the gains it made over longer time frames and is currently down 12 percent month-on-month.

Featured image from DALL-E, chart from TradingView.com