Bitcoin (BTC) Miners Show Conviction as Selling Pressure Hits 2024 Low

Bitcoin [BTC] miners are showing signs of conviction, with selling pressure falling to its lowest level since early 2024. This trend reflects increasing

Bitcoin (BTC) miners are showing signs of remarkable resilience, with their selling pressure falling to the lowest point since early 2024. This trend, which coincides with a highly leveraged derivatives market, might spell both stability and potential volatility for the flagship cryptocurrency.

Bitcoin miners holding firm

As highlighted by Alphractal’s latest analysis, the final days of August saw Bitcoin miner selling pressure drop to its lowest level since the beginning of 2024. The miner pressure metric, which compares 30-day miner outflows to the average, is now closely hugging the lower band.

This indicator, a keen barometer of miner behavior, typically sees pressure increase during periods of heightened selling, while lower pressure signals that miners prefer to hold onto their BTC - a move that has historically been bullish for price stability.

The last time pressure fell to this extreme, Bitcoin entered a period of relative calm and stability at around $60,000, after which it experienced its next major price move. However, with leveraged long positions on derivatives exchanges currently piling up, especially between $100,000 and $110,000, any abrupt price shift could prompt miners to quickly change their stance, potentially reigniting volatility.

Bitcoin liquidation heatmap: A tale of two trends

While miners are holding firm, the derivatives market is a bit more fragile, with its fragility being highlighted by Alphractal’s Bitcoin liquidation heatmap.

The heatmap vividly displays a massive build-up of high-leverage long positions, particularly between the price tiers of $100,000 and $110,000. This indicates that a swift move downward from these levels could cascade into billions in liquidations, ultimately intensifying volatility.

Furthermore, nearly all the recent growth in open interest has been driven by leveraged longs, leaving the market heavily tilted. This presents an excellent opportunity for traders, but it also carries a significant risk of sharp downside potential should the market's structure change quickly.

Bitcoin price outlook

In the final hours of August 31, BTC was trading at $104,336, showing a modest intraday decrease of 0.27%. Despite this minor pullback, BTC remained above the critical $100,000 support level.

The Relative Strength Index (RSI) was seen hovering around 75, which signaled overbought conditions and a potential cooldown in buying pressure.

On the other hand, the On-Balance Volume (OBV) flattened out after recent gains, which might suggest that the momentum of buyers was slowing down.

With bullish sentiment still present but leverage risks looming, Bitcoin could either continue to consolidate above $100,000 or face a steeper correction if selling pressure returns.