Bitcoin is selling off writing and approaching the psychological support of $60,000. From what it prints, clearly on the daily chart, it represents a weak start to Q4 2024, a historically bullish quarter.
Bitcoin miners reduce their dumping
While BTC is under pressure, falling almost 10% from September highs, it is emerging that Bitcoin miners have been slowing down their liquidation activities. In a post on X, an analyst observe That in recent weeks, major Bitcoin miners have been gradually reducing coin transfers to major centralized exchanges such as Binance and Coinbase.
This development marks a huge price increase after the April 20 halving event. In general, and looking at past trends, before and after Halving, miners tend to move their reserves to the exchanges, selling them as they adjust to the new inflation regime.
After Halving, the protocol automatically reduces block rewards by 50%. The 50% drop also means that miners have to adapt to the same drop in revenue, even more so if the transaction fees associated with each block do not change significantly.
After prices rose to nearly $74,000 in March, market traders expected Bitcoin to resume the uptrend immediately afterwards. Reduce by half. However, due to thousands of BTC sold by “weak” miners after the Halving, prices dropped even with net inflows in some cases from spot Bitcoin ETF issuers in the United States.
Will BTC bounce further in Q4 2024?
Therefore, reducing selling pressure from miners would likely support prices. Their decision to slow down the liquidation of BTC indicates that they expect prices to recover in the coming months. For the bullish trend to continue, traders pay attention to fundamental factors.
That historically bullish fourth quarter of 2024, especially in October and November, could support optimistic bulls. The problem now is that the losses of the last three days mean that this is the worst start to October for Bitcoin in at least a decade.
In the short term, the liquidation, the analyst sayscould be contained if short-term holders (STH) reduce their supply by 80,000 BTC. STHs are entities that purchased the currency in the last 155 days.
They are often considered speculators and pose a risk to BTC’s uptrend as they tend to sell and cannot withstand wild price fluctuations. If they reduce their supply, BTC may find support at $60,000. Otherwise, if the bears continue to push, the coin may fall below $57,000, a support line formed on the daily chart.
Featured image from Canva, TradingView chart
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