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Bitcoin miners may be pointing the way to a major long-term BTC price rebound.
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Bitcoin is giving classic local bottom signs as miners face a new “capitulation” phase, data reveals.
In an X post on Feb. 10, analytics account Bitcoindata21 flagged a “triggering” turnaround for Bitcoin’s (BTC) hash ribbon indicator.
Bitcoin miners in spotlight amid bull run slump
The hash ribbon is a well-known leading indicator of incoming BTC price reversals at local lows.
When the 30-day moving average of hashrate dips below its 60-day equivalent, miners are perceived to be experiencing “capitulation” — or as Bitcoindata21 observes, “when Bitcoin becomes too expensive to mine relative to the cost of mining.”
Such events are rare and tend to precede periods of protracted BTC price upside.
“The Hash Ribbon indicates that the worst of the miner capitulation is over when the 30d MA of the hashrate crosses above the 60d MA (switch from light red to dark red areas),” the X post explains alongside a chart from onchain analytics firm Glassnode.
The last miner capitulation phase occurred in mid-October 2024, just before BTC/USD advanced beyond old all-time highs of $73,800 to reach $108,000 two months later.
Bitcoin hash ribbon chart. Source: Glassnode
Darkfost, a contributor to onchain analytics platform CryptoQuant, described the hash ribbon as a “reliable signal” for market entries.
“Notably, It has only missed once due to the unprecedented impact of the COVID-19 market shock,” he wrote in a Quicktake blog post on Feb. 11.
“This indicator consistently highlights optimal entry zones, both for mid-term positioning and long-term accumulation. Each time the Hash Ribbons have flashed in the past, a Bitcoin rally has followed.”
“A lot can happen” before next BTC buy signal
Charles Edwards, founder of quantitative Bitcoin and digital asset fund Capriole Investments, noted that miners added BTC exposure in early February.
Related: Most sell risk since 3AC collapse: 5 things to know in Bitcoin this week
“Bitcoin miners are once again growing their stack,” he told X followers alongside Capriole data covering miner netflows.
BTC/USD chart with Bitcoin miner netflows data. Source: Charles Edwards/X
On hash ribbon data, Edwards described the latest capitulation as having “just started,” arguing that the true market turning point signal had not yet arrived.
“We all know what it means when a Hash Ribbon buy signal eventually follows…” he acknowledged.
“A lot can happen between now and then. But we are entering a window of opportunity.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article first appeared at Cointelegraph.com News
