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