In recent weeks, Bitcoin (BTC) has struggled to capitalize on a favorable macroeconomic climate that has spurred significant equity rallies. Analysts attribute this to a supply overhang from prolonged selling by BTC investors and miners. However, a recent Bitfinex Alpha report suggests this trend may soon reverse, as Bitcoin miner selling pressure is decreasing.

Since the Bitcoin halving in April, miner revenue has halved, forcing miners to liquidate their Bitcoin holdings to cover operational costs. Despite this, the frequency and volume of Bitcoins moving out of miner wallets have declined, indicating potential market stabilization. This reduction in selling pressure could pave the way for an upward price rally.

Historical patterns support this optimism. Bitfinex analysts noted similar miner sell-offs from May to September 2023 and December 2023 to January 2024. Once selling pressures eased, Bitcoin resumed its upward trend.

However, other supply overhangs from large-scale selling by long-term holders continue to impact the market. The German government's recent Bitcoin offloading, coupled with renewed profit-taking by other long-term holders, suggests the near-term outlook remains vulnerable to volatility.