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Will it ever end? By U.Today
U.Today: Miners have been actively selling their holdings since the halving effect began. As the on-chain data suggests, the amount of selling pressure coming from Bitcoin miners is not diminishing, and at the current rate, there will be very little BTC left to sell.
The halving event usually results in a period of miners’ capitulation because it halves the block reward for miners. This occurs when mining loses money, forcing miners to liquidate their Bitcoin holdings to pay management fees.
Due to the duration of this phase, the market is constantly under pressure to sell. On-chain data from multiple analytics platforms demonstrates this continued yield. Indicator of miners’ surrender and recovery phases, Bitcoin Ribbon hashes still show stress.
The Ribbons hash chart, which shows a significant period of unresolved miner capitulation, makes this prolonged phase clear. Persistent selling pressure has prevented Bitcoin’s price recovery from reaching previous highs. One of the main reasons behind Bitcoin’s inability to break above significant resistance levels is the incessant selling by miners.
Bitcoin is struggling to maintain its position above the 50 EMA and 100 EMA while getting dangerously close to the 200 EMA. The relative strength index or RSI at 43.10 indicates that the price of Bitcoin is not overbought or oversold, but continued selling pressure from miners has kept the market moving in a bearish direction.
Different levels of long-term and short-term interest in Bitcoin are indicated by funding rates on well-known exchanges such as Binance, OKX, and Bybit. Trader sentiment and future price movements are revealed by these rates. An impartial attitude towards trading is indicated by the relatively neutral funding rate for Bitcoin.
The market is still significantly influenced by miner sales. The conclusion of this capitulation phase could depend on several factors. Miners may not have to sell their holdings if there is a substantial increase in the price of Bitcoin that makes mining profitable again.