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Bitcoin miners have been actively selling their holdings since the halving effect kicked in. As the on-chain data suggests, the amount of selling pressure coming from Bitcoin miners is not descending, and at the current pace, 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 for running expenses.
Because of how long this phase has been, the market is under constant pressure to sell. On-chain data from multiple analytics platforms demonstrate this continued surrender. An indicator of miner surrender and recovery stages, the Bitcoin hash ribbons are still displaying stress.
The hash ribbons chart, which shows a significant period of miner capitulation that has not yet been resolved, makes this prolonged phase clear. The persistent selling pressure has blocked Bitcoin's price recovery from reaching its previous highs. One of the primary reasons behind Bitcoin's inability to break above significant resistance levels is the miners' unceasing selling.
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 the price of Bitcoin is not overbought or oversold, but the ongoing selling pressure from miners has 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. The sentiment of traders and prospective price movements are revealed by these rates. An even-handed attitude toward trading is indicated by the comparatively neutral funding rate for Bitcoin.
The market is still significantly impacted by miners' sales. The conclusion of this capitulation stage may depend on a number of factors. Miners might not have to sell their holdings if there was a substantial increase in the price of Bitcoin that would once again make mining profitable.