Miners dumping 120,000 Bitcoins has triggered market turbulence; can $60 million in funds withstand the selling pressure?

The Bitcoin market is currently facing a tug-of-war between supply and demand. In September, miners transferred over 120,000 Bitcoins to exchanges, with daily selling volume reaching as high as 5,000 to 7,000 coins, leading to significant selling pressure. However, at the same time, $60.51 million in new funds flooded into the market, keeping the NVT Ratio at a healthy level and gradually improving market sentiment. How will this contest between bulls and bears affect Bitcoin's short-term trend? Can the price hold the crucial support level of $109,000 amidst this wave of dumping?

Miner large-scale dumping: 120,000 Bitcoins flood into the market

(Source: CryptoQuant)

According to CryptoQuant data, Bitcoin miners transferred over 120,000 BTC to exchanges in September, setting a recent high. These transfers mainly flowed to CEX trading platforms, with a daily trading volume between 5,000 and 7,000 BTC, and on some days even exceeding 6,000 BTC. Although there has been a slight decline compared to earlier periods (a decrease of 1.12%), the scale is still large enough to have a significant impact on the market.

Analysts point out that miner dumping behavior usually reflects an urgent demand for liquidity, possibly to cover operating costs, upgrade equipment, or implement hedging strategies. It is worth noting that this wave of dumping coincides with Bitcoin being in a sensitive period, as multiple market factors are testing its short-term resilience.

Spot capital inflow: 60.51 million USD new funds provide support

(Source: Coinglass)

Despite facing selling pressure from miners, the Bitcoin spot market has demonstrated remarkable resilience. According to CoinGlass data, as of the time of this report, net inflows reached 60.51 million USD, and this buying power quickly absorbed the market supply, effectively maintaining liquidity balance.

The spot capital flow has begun to recover after a period of stagnation, indicating that investors are actively participating in trading within this important price zone, thereby limiting the risk of further declines. It is particularly noteworthy that this recovery trend stands in sharp contrast to the outflow of institutional ETF funds, reflecting that retail and speculative capital still play a crucial role in the current market.

NVT Ratio Improvement: Network Activity Supports Market Capitalization

(Source: CryptoQuant)

CryptoQuant data shows that the Network Value to Transactions (NVT) ratio of Bitcoin has dropped to 21.4, indicating that transaction volume is increasingly supporting Bitcoin's market capitalization. A decline in the NVT ratio is generally seen as a healthy signal, suggesting that the actual utility value of the network is more aligned with its market valuation.

The improvement of this indicator strengthens the market view: although external pressures continue to put pressure on BTC prices, network activity remains stable. The decline in NVT also reflects that Bitcoin's usage in real-world applications is still strong, and this practicality provides additional balancing power to the market.

Market sentiment turns positive: social indicators show a return to optimism

(Source: Santiment)

According to data from Santiment, the weighted sentiment index for Bitcoin has turned positive at 0.42, indicating that market sentiment is gradually improving. At the same time, Bitcoin's social dominance index has risen to 23.68%, which confirms Bitcoin's dominant position in discussions across the entire cryptocurrency market.

These signals reflect that investor confidence is recovering, but historical experience reminds us that whenever social dominance surges, the market often enters a brief cooling phase. Therefore, analysts advise investors to balance optimism with caution in their trading strategies to avoid blindly following trends.

Supply and Demand Struggle: Can Bitcoin Hold the Support Level of 109,000 USD?

The current market resilience of Bitcoin is primarily supported by three major factors: strong inflow of spot funds, a healthy NVT Ratio, and improved market sentiment. These three pillars together form a defense line against the selling pressure from miners. As long as the buying demand is strong enough to continuously absorb market supply, BTC is expected to hold the key support level of around $109,000.

However, market analysts warn that if the scale of miner selling further expands, it could still trigger a deeper pullback. Current technical analysis indicates that $105,000 and $100,000 will become the next important support areas, and the performance at these price levels will determine the short-term market direction.

In terms of fundamentals, the health indicators of the Bitcoin network remain robust, which provides confidence for long-term investors. As the market gradually digests this wave of dumping pressure, prices are expected to find a balance point again in the coming weeks.