Bitcoin Miners Face New Capitulation Phase Amid Market Fluctuations

According to Cointelegraph, Bitcoin (BTC) is exhibiting signs of a local bottom as miners encounter a fresh phase of 'capitulation,' as revealed by recent data. On February 10, the analytics account Bitcoindata21 highlighted a significant shift in Bitcoin's hash ribbon indicator, suggesting a potential turnaround in BTC's price trajectory. The hash ribbon is a prominent indicator used to predict BTC price reversals at local lows. It signals miner capitulation when the 30-day moving average of hashrate falls below the 60-day equivalent, indicating that mining Bitcoin has become too costly relative to the expenses involved. Such occurrences are infrequent and often precede extended periods of BTC price increases. Bitcoindata21 noted that the worst of the miner capitulation is typically over when the 30-day moving average of the hashrate surpasses the 60-day moving average. The previous miner capitulation phase took place in mid-October 2024, just before BTC/USD surged past its previous all-time high of $73,800, eventually reaching $108,000 two months later. Darkfost, a contributor to the onchain analytics platform CryptoQuant, described the hash ribbon as a 'reliable signal' for market entries, emphasizing its historical accuracy in identifying optimal entry zones for both mid-term and long-term investments. He noted that the indicator has only failed once due to the unprecedented impact of the COVID-19 market shock. Charles Edwards, founder of Capriole Investments, observed that Bitcoin miners were increasing their BTC holdings as of early February. He shared data on miner netflows, indicating that miners are once again expanding their Bitcoin reserves. Edwards described the latest capitulation as having 'just started,' suggesting that the definitive market turning point signal has yet to emerge. He acknowledged that while a Hash Ribbon buy signal is anticipated, much can transpire before it materializes, marking the current period as a potential window of opportunity. This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers are encouraged to conduct their own research before making any financial decisions.