BTC Hash Ribbon indicator signals miner capitulation could be almost over

Please fol­low and like us:
Pin Share

Bit­coin (BTC) hold­ers had it tough in 2022, but it was an even tougher year for BTC min­ing — min­ing stocks fell over 80%, and min­ing com­pa­ny bank­rupt­cies solid­i­fied the bear mar­ket — but the worst of min­er capit­u­la­tion could be over, accord­ing to Cryp­toSlate analysis.

With BTC price down 75% from its all-time high (ATH), the hash rate too reached an all-time high as min­ers increased efforts to ensure prof­itabil­i­ty in the ener­gy crisis.

Bitcoin: Hash Ribbon (Source: Glassnode.com)
Bit­coin: Hash Rib­bon (Source: Glassnode.com)

BTC Miner capitulation decreasing

The Hash Rib­bon indi­ca­tor chart above indi­cates that the worst of min­er capit­u­la­tion is over when the 30-day mov­ing aver­age (MA) cross­es the 60-day MA — switch­ing from light-red to dark-red areas.

When this par­a­digm shift occurs, a switch from neg­a­tive to pos­i­tive price momen­tum is expect­ed, which his­tor­i­cal­ly reveals good buy­ing oppor­tu­ni­ties (switch­ing from dark-red back to white).

It is sug­ges­tive that the worst of min­er capit­u­la­tion is almost over as BTC turns bull­ish and breaks out towards $19,000, accord­ing to Glassnode data in the chart above ana­lyzed by CryptoSlate.

Bitcoin: Miner Balance (Minus Patoshi and Other) - Source Glassnode.com
Bit­coin: Min­er Bal­ance (Minus Patoshi and Oth­er) – Source Glassnode.com

BTC miner supply sell pressure abating

The total sup­ply of BTC cur­rent­ly held in min­er wal­lets has hit rough­ly 1.8 mil­lion BTC after a draw­down of rough­ly 30,000 BTC. This doesn’t direct­ly indi­cate that the BTC was sold but could, in fact, have been moved to anoth­er wal­let for long-term storage.

Mean­while, min­er spend­ing has dras­ti­cal­ly decreased as trans­fer vol­ume from min­ers to exchanges falls great­ly, as shown in the chart below.

Bitcoin: Transfer Volume from Miners to Exchanges - (Source: Glassnode.com)
Bit­coin: Trans­fer Vol­ume from Min­ers to Exchanges – (Source: Glassnode.com)

Min­er sell pres­sure has reached its low­est in the last three years as less than 100 BTC is being sold on a sev­en-day MA. When com­pared to the vicious draw­down in 2022 — where min­ers were spend­ing more BTC than was being mined — all charts indi­cate sell­ing pres­sure is set to switch to buy pressure.

Bitcoin: Miner Percent Mined Supply Spent - (Source: Glassnode.com)
Bit­coin: Min­er Per­cent Mined Sup­ply Spent – (Source: Glassnode.com)

Read Our Latest Market Report

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *