Since the onset of the halving impact, Bitcoin miners have been actively selling their holdings. On-chain data indicates that the selling pressure from Bitcoin miners has not decreased, and at the current rate, there will be very little Bitcoin left. The halving event typically leads to a miner capitulation period because it halves the block reward. This reduction in revenue makes mining unprofitable, forcing miners to liquidate their Bitcoin holdings to cover operational expenses.
Due to the prolonged nature of this phase, the market experiences sustained selling pressure. On-chain data from multiple analytics platforms show this ongoing capitulation. The Bitcoin hash ribbon chart clearly illustrates this extended period of miner capitulation. The continuous selling pressure has prevented Bitcoin’s price from recovering to previous highs. One of the main reasons Bitcoin has been unable to break significant resistance levels is the ongoing selling by miners.
Bitcoin’s price is struggling to maintain its position above the 50 EMA and 100 EMA and is dangerously close to the 200 EMA. The Relative Strength Index (RSI) at 43.10 suggests that Bitcoin is neither in the overbought nor oversold territory, but the persistent selling pressure from miners has kept the market in a downward trend.
Various levels of long and short interest in Bitcoin are indicated by funding rates on well-known exchanges like Binance, OKX, and Bybit. These rates reveal trader sentiment and potential price movements. A relatively neutral Bitcoin funding rate indicates a balanced stance towards trading.
The market continues to be significantly impacted by miner sales. The conclusion of this capitulation phase could depend on several factors. If there is a substantial increase in Bitcoin’s price, making mining profitable again, miners may not need to sell their holdings.
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