Key highlights:
- Bitcoin miner reserves have fallen back to the same levels seen before BTC’s initial breakout attempt above $65,000 on July 16
- New Bitcoin issuance has declined sharply, with only 396 BTC entering circulation, tightening available supply
- Bitcoin’s Stochastic RSI has entered oversold territory as the cryptocurrency makes a third attempt to break through the critical $65,000 resistance
Bitcoin miner reserves fall as supply tightens
According to the latest miner reserve metrics, the amount of Bitcoin held by miners has dropped back to levels last seen on July 16, when BTC launched its first breakout attempt above the $65K resistance zone.
Miner reserves are closely watched because they provide insight into potential selling pressure. Declining reserves indicate that miners are selling their Bitcoin to cover operational costs.
Technical indicators favor another breakout attempt
On the daily chart, Bitcoin is now making its third attempt to clear the key supply zone at $65K. At the time of writing the token was trading at $64.5K, just $0.5K shy off the supply zone.
The previous two rallies were rejected near the same resistance area, leaving sellers firmly in control.
However, repeated tests of a resistance level often weaken sell-side liquidity as resting orders are gradually absorbed.
At the same time, Bitcoin’s Stochastic RSI has moved into oversold territory, suggesting bearish momentum may be fading. Oversold readings frequently precede short-term recoveries when supported by improving on-chain fundamentals.
If buyers capitalize on the tightening supply, the latest setup could provide the momentum needed to finally push Bitcoin above the multi-week resistance level.
While the $65,000 zone remains a formidable barrier, diminishing supply could tip the balance if demand continues to build. A decisive breakout above this level would likely expose higher liquidity clusters and strengthen the case for a broader bullish continuation.
As it stands, traders and investors will be watching whether Bitcoin’s third attempt succeeds where the previous two failed. If shrinking miner supply continues to coincide with renewed buying pressure, the long-awaited move above $65,000 may finally materialize.
Source:: Bitcoin Miners Slash Reserves as BTC Eyes Third Breakout Above $65K