Bitrabo Editorial
Currently, Bitcoin is experiencing a sell-off, nearing the critical support level of $60,000. The daily chart indicates a weak beginning for Q4 2024, which is typically a period known for positive market trends.
Bitcoin Miners Cutting Back on Sales
Despite the pressure on BTC, which has fallen nearly 10% since its September peak, there are signs that Bitcoin miners are easing their selling activity. An analyst on X pointed out that in recent weeks, leading miners are increasingly holding onto their assets instead of transferring them to big exchanges like Binance and Coinbase.
This shift in behavior is notable following the Halving event on April 20. Traditionally, miners sell off their reserves before and after such events, adjusting to new inflation parameters.
Post-Halving, the network automatically halves block rewards, leading to a significant drop in miners’ earnings, especially if transaction fees remain unchanged.
After seeing prices peak near $74,000 in March, traders anticipated a swift recovery following the Halving. However, the considerable amount of BTC sold by weaker miners led to a decline, despite some positive inflow from spot Bitcoin ETF issuers in the U.S.
Is a BTC Recovery Possible in Q4 2024?
The reduction in selling pressure from miners could create a favorable environment for price stabilization. Their choice to limit sales suggests they may be anticipating a price rebound in the near future. To maintain a positive trend, traders are closely monitoring key indicators.
The historically strong performance of Q4 2024, particularly in the months of October and November, may encourage bullish sentiment. However, the losses incurred over the past three days mark one of the slowest starts for Bitcoin in October in the last ten years.
In the near term, the analyst notes that the drop could stabilize if short-term holders (STHs) reduce their holdings by 80,000 BTC. STHs are those who purchased Bitcoin within the last 155 days.
Often seen as speculators, STHs pose a risk to BTC’s upward momentum since they are likely to sell during price fluctuations. If they can curb their supply, Bitcoin might find support at $60,000. Conversely, if selling pressure persists, the price could dip below $57,000, as indicated by a support level seen in the daily chart.