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 decreasing and at the current rate, there will be very little. BTC remains to sell.
The halving event typically results in a period of capitulation by miners 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.
Because of how long this phase has been, the market is under constant pressure to sell. On-chain data from multiple analytics platforms demonstrates this continuous surrender. An indicator of miners' stages of recovery and surrender, Bitcoin hash tapes still show stress.
The hash tape chart, which shows a significant period of miner capitulation that has yet to be resolved, makes this prolonged phase clear. Persistent selling pressure has prevented Bitcoin's price recovery from reaching its 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 stumbling to maintain its position above the 50 EMA and 100 EMA as it moves dangerously close to the 200 EMA. The Relative Strength Index or RSI at 43.10 indicates that Bitcoin price is neither overbought nor oversold. , but continued selling pressure from miners has kept the market moving in a bearish direction.
The different levels of long-term and short-term interest in Bitcoin are indicated by the funding rates on well-known exchanges such as Binance, OKX, and Bybit. These rates reveal trader sentiment and possible price movements. Bitcoin's comparatively neutral funding rate indicates a fair-minded attitude towards trading.
The market is still significantly affected by miners' sales. The conclusion of this capitulation stage may depend on several factors. Miners may not have to sell their stakes if there were a substantial rise in the price of Bitcoin that would make mining profitable again.
This article was originally published on U.Today.
