Bitcoin Mining Bleed Keeps Miners Selling, Limits Rally
Bitcoin is struggling to reclaim strength as CryptoQuant data shows Miner Selling Power rising while BTC price falls—a structural decoupling that began in H2 2025. The article argues this is not typical sentiment-driven profit taking, but survival-driven unloading when operating costs (electricity, maintenance, facilities) exceed mining revenue. As long as this forced selling is not fully absorbed, upside may remain limited.
In the market setup, BTC trades around $66,800 after a sharp February breakdown. Price is consolidating after a previous capitulation-like event, with a broad range near $62,000–$72,000. Recent rallies toward $70,000–$72,000 failed repeatedly, producing lower highs and suggesting sellers still defend resistance. Moving averages add pressure: the 50-day and 100-day are trending down above price (dynamic resistance), while the 200-day remains far higher. Volume has also cooled during consolidation, implying weaker buyer conviction.
For traders, the core takeaway is that Bitcoin’s near-term direction may be constrained by ongoing miner-driven supply rather than macro or ETF headlines, increasing the risk of range lows being tested if BTC cannot reclaim key moving averages.
Bearish
The article’s main signal is structural, not cyclical: Miner Selling Power increasing while Bitcoin price declines suggests miners are offloading to cover costs rather than reacting to sentiment. This resembles prior “supply-overhang” periods in crypto where persistent forced selling can prolong consolidation and delay sustainable breakouts. Even if BTC experiences one-off capitulation-like volume spikes, the absence of a clear endpoint for forced selling implies the market may need more time (and more downside absorption) before upside can develop.
Short-term, traders should treat resistance near the $70k–$72k zone and falling 50/100-day moving averages as key barriers; failed rebounds often invite range-low tests. If BTC cannot reclaim those moving averages with strength, the bearish bias remains.
Long-term, if miners gradually reduce Selling Power (i.e., the cost/revenue gap narrows), it could become a catalyst for trend reversal. Until then, expectations for rallies should be tempered, with risk management focused on downside-to-range support behavior rather than immediate trend recovery.