Bitcoin (BTC) Miners Slowing Down Dumping Activities as the Market Anticipates a Q4 2024 Rally

Bitcoin is selling off when writing and approaching the psychological support at $60,000. From what’s printing out, clear in the daily chart, it represents a weak start for Q4 2024–a historically bullish quarter.

Bitcoin price is experiencing a sell-off as it approaches the crucial psychological support at $60,000. This development comes as Q4 2024 begins on a weak note, according to the daily chart. However, a closer look at the market reveals that Bitcoin miners have been reducing their dumping activities.

According to an analysis post on X, over the past few weeks, top Bitcoin miners have been gradually decreasing their coin transfers to major centralized exchanges, such as Binance and Coinbase, slowing down the miner selling pressure. This observation is based on the available data from top Bitcoin mining pools.

After the April 2024 Halving event, Bitcoin miners' increasing selling pressure put a massive damper on the coin’s price rally. As observed in past trends, before and after Halving, miners tend to move their reserves to exchanges, selling them as they adjust to the new inflation regime.

Following each Halving, the protocol automatically reduces block rewards by 50%. This 50% drop also means that miners have to adapt to an equal drop in revenue, especially if the transaction fees attached to each block do not change significantly.

After Bitcoin's price rally to nearly $74,000 in March 2024, market participants anticipated that BTC would continue its uptrend right after Halving. But due to the hundreds of thousands of BTC sold by "weak" miners post-Halving, prices edged lower even with net inflows in some instances from spot Bitcoin ETF issuers in the U.S.

Reducing selling pressure from miners, hence, would likely bolster prices. Their decision to slow down their BTC liquidation signals that they expect prices to recover in the coming months. For the uptrend to be sustained, traders are keeping an eye on fundamental factors.

That historically bullish Q4 2024, especially in October and November, could support optimistic traders. The problem now is that the losses of the past three days mean this is the worst start for Bitcoin in October in at least a decade.

In the short term, the sell-off, the analyst says, could be contained if short-term holders (STHs) reduce their supply by 80,000 BTC. STHs are entities that bought the coin within the last 155 days.

They are often considered speculators and present a risk to the BTC uptrend since they tend to sell and can't withstand sharp price fluctuations. If they reduce their supply, BTC may find support at $60,000. Otherwise, should bears press on, the coin may sink below $57,000—a support line formed in the daily chart.

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