Bitcoin has signaled the end of miner capitulation, as indicated by the popular Hash Ribbons indicator, according to analysts at on-chain data and analytics platform CryptoQuant.
Analysts comment This comes as the leading cryptocurrency retested the $59,000 level. However, the cryptocurrency has struggled over the past week, with Bitcoin falling back below $60,000 levels after hitting resistance at the $62,400 area.
Hash rate hits all-time high
While bears remain a threat, CryptoQuant’s latest post on the potential price scenario for Bitcoin suggests that there could be bullish momentum in the coming months. The analytics platform notes that Hash Ribbons, an indicator used by traders to identify “stressful periods in the mining market,” has signaled a potential bottom.
Hash Ribbons uses Bitcoin’s 30- and 60-day moving averages of hash rates to highlight this possibility. The end of the miner capitulation coincides with the network’s hash rate rising to an all-time high of 638 exahashes per second.
“Miners started using more efficient equipment, re-working their machines, and became less likely to sell.”
Crypto Quant
Retail strips often precede price increases.
Bitcoin experienced its fourth halving in April 2024, where the block reward dropped from 6.25 BTC to 3.125 BTC. Prices surged ahead of the halving to an all-time high above $73,000 before miner capitulation and other negative catalysts pushed Bitcoin lower.
CryptoQuant referred to the flash of Hash Ribbons — the first since the halving — as a “healthy sign.”
“Although the indicator is not supposed to pinpoint a price bottom, it often precedes a price rally by signaling a decrease in selling pressure from miners.”
Crypto Quant
Bitcoin is trading at around $59,086 at the time of writing.
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