A specialist articulated that Bitcoin has a history of bouncing back from downtrends, like the current one the cryptocurrency is experiencing.
Miner Capitulation Ongoing as per Bitcoin Hash Ribbons
In a recent publication on X, analyst Willy Woo highlighted the importance of the Bitcoin hashrate concerning the asset’s price revival. The hashrate is a measure of the total computing power miners have connected to the network.
Changes in this metric reflect the participation of these validators. An increase suggests that miners find the network profitable to mine on, while a decrease may indicate miners finding it unprofitable.
The ‘hash ribbons’ indicator compares short-term and long-term moving averages of the hashrate. A fall under the long-term average signals mass miner capitulation, while a reverse crossover indicates the end of their capitulation.
Bitcoin typically rebounds when weak miners exit and the hashrate recovers after capitulation. This signals the end of a market phase. The hash ribbons graph provided by the analyst illustrates the current miner situation.
Miners are undergoing capitulation, primarily due to the Halving event in April. Halvings occur every four years and halve block rewards, impacting miner revenue significantly, leading to the recent hashrate decline.
The hash ribbons have indicated miner capitulation for 61 days, setting a record for post-halving capitulation duration. A comparison with 2016 and 2020 mining periods shows varying lengths of recovery periods between cycles.
Bitcoin Price Update
Bitcoin is currently trading around $63,900, experiencing a 4% decrease over the past week.
