Bitcoin Miners Enter “Capitulation” Phase, Sparking Speculation of Price Reversal Below $100K.
Bitcoin’s market is showing signs of a potential price shift as miners enter a phase of “capitulation.” This phase is identified by the hash ribbon indicator, which tracks the 30-day and 60-day moving averages of Bitcoin’s hashrate. When the 30-day moving average dips below the 60-day average, it signals that mining Bitcoin has become financially unsustainable, with the cost of mining surpassing the value of Bitcoin itself. This situation, known as miner capitulation, is a rare occurrence but often precedes a significant price reversal.
On Feb. 10, 2025, Bitcoin analytics account Bitcoindata21 highlighted a potential turning point for Bitcoin, citing the hash ribbon’s triggering of a capitulation signal. This event is considered a local bottom indicator, often leading to upward price action. The last time such a signal appeared was in October 2024, when Bitcoin’s price surged from $73,800 to $108,000 in just two months. Historically, miner capitulation events have preceded periods of strong price rallies for Bitcoin.
The hash ribbon indicator is considered a reliable tool for predicting market reversals. When the 30-day moving average of hashrate crosses above the 60-day moving average, it marks the end of the capitulation phase, signaling that a potential price recovery is underway. This shift in the hash ribbon’s data suggests that the worst of the miner capitulation phase could be over, with analysts anticipating a possible upward trend in Bitcoin’s price.
Source: COINMARKETCAP
