Bitcoin News Today: Bitcoin Miners Avoid Forced Selling as BTC Rises 7.4% Above Last Difficulty Bottom

Bitcoin is exhibiting renewed volatility as it reclaims territory above the $115,000 level, signaling a potential shift in market dynamics after a period of intense selling pressure. The price action suggests that buyers are stepping in more aggressively, indicating a possible easing in the fears of a deeper correction that had gripped the market in recent days [1].

CryptoQuant data highlights that the % BTC price change since the last difficulty bottom currently stands at +7.4%, a figure that places the indicator in the green zone [1]. This metric is a crucial gauge of miner health and overall market stability. Historically, miner capitulation occurs when this reading drops into the -10% to -30% range, usually following a series of difficulty adjustments that erode miner profitability. In such cases, weaker miners are often forced to liquidate their BTC holdings, adding downward pressure to the price [1].

The current reading of +7.4% indicates that Bitcoin has moved beyond a critical period of miner stress, reducing the likelihood of large-scale forced selling. This contributes to a more stable trading environment and supports the possibility of a more sustained upward move in BTC prices. While the indicator is not yet showing euphoric conditions—typically marked by readings of +50% to +80%—it does suggest a moderate and constructive environment for further accumulation [1].

Axel Adler, a prominent analyst, emphasized that the current miner health is in a neutral-to-positive state. He explained that the price is currently above the last difficulty bottom, which means miners have not capitulated and are not contributing to added selling pressure [1]. Adler pointed out that the +7.4% reading reflects moderate momentum, far from the levels observed during previous bullish cycles but still supportive of a positive near-term outlook. However, he warned that the miner factor is not a strong driver of bullish momentum at this stage and should not be seen as a standalone indicator [1].

Looking ahead, Adler outlined key factors to monitor, including the next difficulty adjustment amid falling prices, which could signal stress for weaker miners. Additionally, tracking metrics like hashprice and miner reserves can provide further insight into whether the sector is under financial strain. An uptick in miner selling during a period of weak price action would serve as an early warning of increasing pressure within the mining community [1].

From a technical perspective, Bitcoin is currently consolidating around $116,585 after pushing above key moving averages on the 4-hour chart. This includes the 50-day, 100-day, and 200-day moving averages, which indicate a potential short-term shift in momentum. The immediate resistance is located at $116,600–$116,700, aligned with the 100-day SMA. A breakout above this level could open the door to the $118,000–$118,500 range, with the next significant resistance at the previous high of $122,077 [1].

On the downside, $115,724 remains a critical support level. A breakdown below this could trigger a pullback toward $114,000 and possibly the $112,500 zone. The relatively modest volume on the recent rebound suggests that buyers still need stronger participation to maintain upward momentum. The current price is still within the broader range established in July, and a decisive move above $118,000 is needed to confirm a breakout and reduce the risk of a reversal [1].

Overall, while miner pressures are no longer a drag on the market, they are also not a significant bullish driver at this stage. The trajectory of BTC will depend more on demand-side factors and broader macroeconomic developments. Maintaining support above $115,700 will be key for bulls aiming to test higher levels in the near term [1].

Source: [1] Bitcoin Miners Avoid Forced Selling: BTC Sits 7.4% Above Last Difficulty Bottom (https://www.newsbtc.com/bitcoin-news/bitcoin-miners-avoid-forced-selling-btc-sits-7-4-above-last-difficulty-bottom/)