Bitcoin has been under heavy pressure for weeks, but if we can believe the data from CryptoQuant, we can almost look up again. According to the platform’s analysts, withdrawals from Bitcoin miners have fallen by 90% since the halving. This means that the selling pressure from the miners is starting to decrease.

Bitcoin miners under heavy pressure

After the April halving, which reduced the block subsidy for miners by 50%, Bitcoin miners had several months to get used to the new economic reality.

As a result of the drop in revenue for miners, both the hashrate and difficulty for mining Bitcoin have fallen sharply from all-time highs.

“After the Bitcoin halving, rewards for miners were cut in half, meaning older machines were no longer used,” said Crypto Dan on the CryptoQuant platform.

“As a result, miners’ activity has declined and they started selling their Bitcoin in OTC transactions to cover the costs of operating their operations,” the analyst said.

Capitulation among the miners

Based on the Hash Ribbons, it appears that miners are in a state of “capitulation,” which occurs when the 30-day moving average of the hashrate drops below its 60-day equivalent.

While that in itself is often treated as a buy signal by Bitcoiners, Crypto Dan sees this process reversing again.

“The current state of the market is that we are digesting the sell-offs and the number of miners selling Bitcoin is declining rapidly. In other words, miners’ selling pressure is weakening. If all their sales volume can be absorbed by the market, then that creates a situation where the market can rise again,” said Crypto Dan.

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