Bitcoin miner ‘capitulation event’ may have happened – study

Bitcoin (bitcoin) miners may have triggered a “surrender event,” new analysis concludes.

in a renew On June 24, Julio Moreno, a senior analyst at on-chain data firm CryptoQuant, suggested that BTC prices may now bottom.

BTC price bottoms “usually” follow miners’ capitulation

Miners have changed dramatically since March 2020, from unprecedented profitability to squeezed profits.

This fell to $17,600 — BTC/USD is 70% below November’s all-time high, hitting some players hard, data now shows that miner wallets Send a lot of coins to exchange.

This preceded the final phase of the Bitcoin sell-off more widely than historical precedent, CryptoQuant suggested.

“Our data suggest that miner capitulation events have occurred, which typically precede market bottoms in previous cycles,” concludes Moreno.

Mining machine sales It has been closely followed this month, with the @Bitcoin Twitter account even describing the situation as miners “being drained of their coins.”

“For miners, it’s time to decide to stay or leave,” said Ki Young Ju, CEO of CryptoQuant, Add to in last week’s Twitter thread.

Situation is fragile, but most miners are still active, as evidenced by the decline in network fundamentals just slightly From an all-time high of over $30 trillion.

An overview of the basics of the Bitcoin network (screenshot). Source: BTC.com

Mixed Signals of Buyer Interest

However, when it comes to other large BTC holders, the picture seems less clear.

related: Denial of the ‘stupidity’ of Bitcoin being below $10,000 – analysis

after the whale buy liquidity CryptoQuant’s Ki approached $19,000 this week, heralding the arrival of a “new” high-volume entity.

He noted that outflows from major U.S. exchange Coinbase were at their highest level since 2013.

Still, trader and analyst Rekt Capital reiterated skepticism about the strength of the overall number of buyers, arguing that instead sellers are still guiding the market.

Bitcoin’s 200-week moving average (MA), key support level During previous bear markets, it has yet to see significant interest from buyers despite spot prices below its roughly $2,000 level.

“Current BTC buy-side volume remains below the 2018 bear-market buy-side follow-on volume levels at the 200-week MA after extreme selling volume spikes. Not to mention the March 2020 buy-side follow-through,” he said Tell Twitter followers.

BTC/USD annotated chart. Source: Rekt Capital/Twitter

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