YEREVAN (CoinChapter.com) — Bitcoin miners are facing a capitulation phase, signaling potential market shifts. Data from Glassnode and CryptoQuant indicate that the hash ribbon indicator has entered a new cycle. This pattern has previously appeared before major Bitcoin price reversals.
On Feb. 10, analytics account Bitcoindata21 reported that Bitcoin’s hash ribbon had triggered a signal. This indicator tracks miner behavior through the 30-day and 60-day moving averages of hash rate. When the 30-day moving average drops below the 60-day moving average, miners are considered to be in capitulation due to high mining costs.
Bitcoin Hash Ribbon Indicator Triggers Capitulation. Source: Glassnode / XThe last such event occurred in October 2024, before BTC/USD climbed past $73,800 and later reached $108,000.
Bitcoin Miners Under Pressure as Hash Ribbon Signals Capitulation
The hash ribbon indicator suggests that Bitcoin miners are struggling. This occurs when the cost of mining Bitcoin exceeds potential rewards. In these phases, some miners shut down operations, reducing hash rate and triggering a capitulation signal.
CryptoQuant contributor Darkfost called the hash ribbon a “reliable signal” for market shifts.
“It has only missed once due to the unprecedented impact of the COVID-19 market shock,”
Darkfost wrote in a Feb. 11 post.
Bitcoin Miner Capitulation Confirmed by Hash Ribbon. Source: CryptoQuantEach past hash ribbon event has been followed by a Bitcoin price movement, making it a key metric for market analysis.
Bitcoin Miners Adjust Holdings as Market Reacts
Miners have started adjusting their Bitcoin holdings, according to data from Capriole Investments. On Feb. 10, Charles Edwards, the founder of Capriole, shared miner netflow data on X. The data showed that miners have been increasing their BTC exposure.
“Bitcoin miners are once again growing their stack,”
Edwards posted.
Bitcoin Miner Net Flow Spikes Amid Capitulation. Source: Capriole Investments / XDespite this, he noted that the hash ribbon capitulation phase has only just started. The usual buy signal that follows these events has not yet appeared.
“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.”
Edwards wrote.
Bitcoin Hash Ribbon Signals Miner Capitulation. Source: Capriole Investments / XBitcoin Price Movement Remains Uncertain
Bitcoin’s hash ribbon indicator continues to show miner stress. With Bitcoin trading at $96,116, the market is monitoring miner activity for signs of the next price trend. Historically, these capitulation phases have preceded price increases, but no clear reversal signal has been confirmed yet.
Bitcoin Price Drops Below $96,200 on Bitstamp. Source: TradingViewThe post Bitcoin Miner Capitulation Hints at BTC Price Drop Below $100K appeared first on Coinchapter.
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