... but the downside risk is still huge considering that the market has to absorb about $700K of newly mined BTC every day (at the current price).
It doesn't have to absorb it until it's put on exchange or sold OTC.
Miners have to pay their expenses and make a living. Some newly mined coins are stashed, but at the same time, other miners might be selling some previously stashed older coins. I would still expect 3000 BTC/day to be a reasonable selling pressure estimate coming from mining.