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Bitcoin miners end capitulation signaling possible bull market

Bitcoin miners end capitulation signaling possible bull market

GrafaGrafa2024/08/21 04:30
By:Liezl Gambe

Recent data suggests that Bitcoin (CRYPTO:BTC) miners may have concluded their period of capitulation, signaling the early stages of a potential bull market.

As Bitcoin stabilises at around $60,456, reflecting a 2.8% increase in the past 24 hours, market sentiment is turning increasingly positive.

The cessation of heavy selling by miners is contributing to a more favorable environment for Bitcoin's growth.

CryptoQuant, an on-chain analysis firm, highlights the significance of the Hash Ribbons indicator, which tracks the 30 and 60-day moving averages of the Hash Rate.

This indicator has just signaled the end of miner capitulation, coinciding with the Hash Rate reaching a new peak of 638 exahash per second (EH/s).

This development is particularly notable as it marks the first recovery of this kind since the Bitcoin halving, which reduced miners' block rewards.

The reduction in selling pressure from miners is a positive signal, often preceding higher Bitcoin prices.

From January to August 2024, miners sold around 28,018 BTC, valued at approximately $1.68 billion.

However, with decreasing economic pressures, mining companies are now able to hold onto their Bitcoin reserves instead of selling to cover operational costs.

In addition to reduced miner selling, on-chain demand for Bitcoin remains robust.

The average daily token transfer volume increased from $650,000 to $765,000 after Bitcoin reached $57,000, indicating solid demand within the $57,000-$68,000 consolidation range.

This resilience in price suggests that the market has effectively absorbed selling pressure, pointing to a solid demand for Bitcoin.

As Bitcoin approaches the final phase of market consolidation, historical patterns following previous Bitcoin halvings suggest that a bull market may be on the horizon.

With 121 days since the last halving, analysts believe the next bullish phase could commence soon, potentially reinforcing Bitcoin's upward trajectory.

At the time of writing, the Bitcoin price is $59,334.23.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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