The decline in Bitcoin, the leading cryptocurrency, to as low as $60,000 may be coming to an end.
An analysis indicated that the miners’ capitulation has ended, suggesting that BTC is approaching its bottom.
According to CoinDesk, market analyst James Van Straten said that Bitcoin miners are entering the final stages of capitulation, which increases the likelihood of a price bottom forming in BTC.
According to the analyst, after three months of pressure on miners, the Hash Ribbon indicator has started to signal a recovery. This is a pattern that has historically coincided with local or major Bitcoin dips.
According to Glassnode data, this was one of the longest capitulation periods on record. However, the Hash Ribbon indicator, which is based on the 30-day and 60-day averages of the hash rate, is about to exit the capitulation period.
At this point, when the 30-day moving average of the hash rate rises above the 60-day moving average, it means miners are back online and network pressure is decreasing. This is interpreted as a recovery signal for Bitcoin.
Since the Hash Ribbon indicator entered capitulation territory last November, Bitcoin has fallen from around $90,000 to approximately $60,000 this February. At this point, Bitcoin continues to trade below its estimated average cost of production, which is $66,000. This situation last occurred in November 2022, when BTC bottomed out around $15,500.
Finally, the analyst noted that historically, such capitulations have often coincided with local or major lows, such as those in January 2015, December 2018, and December 2022. And he suggests that Bitcoin is currently in a phase similar to these lows.
*This is not investment advice.
