Ever since the Bitcoin price soared above $71,000, followed by the approval of the spot Ethereum ETF, market participants were confident of reaching a new ATH. Unfortunately, all the expectations were altered within the rejection, while the recent pullback has validated a strong bearish trend. The hugely formed bearish candles, which have outperformed the buying pressure, have dragged the BTC price out of the bullish range. Hence, it is now believed the much-speculated bottom below $60,000 may finally be reached.
In times when the institutions have registered record-breaking inflows in the past few days, who is selling Bitcoin and creating selling pressure?
The Bitcoin price has been consolidating within the range for over 100 days now and this may have caused a strong miner capitulation phase, which was rare. This was a result of the halving event, culling the weak miners. Besides, the average cost for miners has surged beyond $75,000 per BTC, while the spot price has dropped below $67,000. Hence, this could have compelled them to shed off their balances, which have been the lowest in the past 6 to 8 months.
As per the data from Glassnode, the Bitcoin miner balance has been steadily declining, hitting multiyear lows as sell-offs increased after the recent Bitcoin halving in April 2024. According to the data from Glassnode, the balances have dropped from 1.84 million BTC in early 2023 to 1.8 million BTC by May 2024. This trend highlights miner’s need to cover operational expenses following reduced block rewards.
Therefore, it can be said that Bitcoin miners have played a significant role in the recent BTC price correction. They have assumed to have sold over 1200 BTC—nearly $80 million—which has been preventing the rally from surpassing the crucial resistance at $71,800. Fortunately, this capitulation phase has approached its end, which may begin a fresh bullish phase. Still, the question remains the same, whether the Bitcoin (BTC) price managed to form a new ATH at $75,000 or not?
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