Bitcoin (BTC) Price Analysis: Analyst Sounds Miner Sell-off Warning as BTC Holds $96K

Bitcoin price has stagnated over the last 4-days, consolidating just above the $96,500 on Feb 9. A prominent market analysts, Charles Edwards has hinted at a potential miner sell-off, a move that could tilt BTC price action bearish in the week ahead.

Bitcoin (BTC) Enters 4-Day Stagnation as Bears Mount Resistance at $97K

Bitcoin (BTC) made a sluggish start to February 2025, as bearish macroeconomic headwinds, as turbulence from Trump-led U.S.-China trade war tariffs, weighed heavily on market sentiment.

Following an initial knee-jerk reaction that triggered over $2 billion in crypto liquidations, BTC markets found temporary relief on Thursday, February 6, stabilizing around the $96,000 support level.

However, while major altcoins like Binance Coin (BNB) and Solana (SOL) have recorded considerable gains in recent days, Bitcoin has remained stagnant since February 6.

The shaded portion in the chart above illustrates BTC price consolidating within a tight $100,000 – $95,000 range over the past four trading sessions, signaling indecision among market participants.

Despite resilient buyer support near $96,000, a breakout above the $97,000 resistance has remained elusive, raising concerns of a potential reversal if bearish pressures intensify.

Capriole Investments Founder Hints at Miner Sell-Off Amid Subdued BTC Price Action

When a systemically important asset like BTC lags behind the broader market uptrend, it often signals the presence of an active internal bearish catalyst. Supporting this theory, Charles Edwards, founder of Capriole Investments, flagged a significant miner sell-off event as a possible reason behind Bitcoin’s stagnation.

“Bitcoin miner capitulation! A new capitulation event has just started.

We all know what it means when a Hash Ribbon buy signal eventually follows… A lot can happen between now and then. But we are entering a window of opportunity,”

• Charles Edwards, founder of Capriole Investments

The Hash Ribbons indicator, a well-regarded on-chain metric, identifies periods of miner capitulation based on hash rate dynamics. Historically, when Bitcoin’s hash rate declines sharply, it suggests that miners are struggling with profitability, often leading to sell-offs as they offload BTC to cover operational costs.

While miner capitulation typically precedes long-term recovery, it can induce short-term bearish price action.

Miners’ Reserves Drop Signals Additional Selling Pressure

Further supporting this bearish Bitcoin price forecast, IntoTheBlock’s Miner Reserves metric highlights a sharp drop in BTC holdings among mining entities.

This indicator tracks the daily changes in the aggregate Bitcoin balances held in wallets controlled by recognized miners and mining pools, offering insights into miner activity.

Between February 4 and February 8, miner reserves fell from 1.94 million BTC to 1.91 million BTC, marking an outflow of approximately 30,000 BTC—equivalent to nearly $3 billion at current market prices.

This level of selling pressure is significant, as it inflates short-term market supply, potentially weighing down Bitcoin’s price.

Historically, periods of large miner sell-offs have coincided with either price stagnation or temporary declines, as excess BTC supply outpaces existing demand. If miners continue offloading reserves at this scale, Bitcoin could struggle to maintain the $96,000 support level, increasing the risk of a deeper pullback toward $94,500 or lower in the coming sessions.

While long-term holders may view miner capitulation as a buy-the-dip opportunity, the immediate outlook for Bitcoin remains uncertain. If selling pressure from miners subsides and Bitcoin manages a sustained breakout above $97,000, a renewed bullish trend could emerge. However, failure to do so could see Bitcoin extend its current stagnation or even slip into a short-term downtrend.

With Bitcoin at a critical juncture, traders and investors will be closely monitoring miner activity and macroeconomic developments for further directional cues.