According to a fresh analysis, Bitcoin (BTC) miners may have already triggered a “surrender event.”
AT Refresh On June 24, Julio Moreno, a senior analyst at grid company CryptoQuant, hinted that a BTC price bottom could now occur.
BTC Price Bottom ‘Usually’ Follows Miner Surrender
Since March 2020, the conditions for mining companies have changed dramatically: their margins have decreased from unprecedented profitability.
The drop to $17,600, 70% off November’s all-time highs for BTC/USD, hit some players hard, data now shows, as miners’ wallets send large amounts of coins to exchanges.
This, CryptoQuant suggests, precedes the final stages of the bitcoin selloff more broadly, in line with historical precedent.
“Our data demonstrates a miner capitulation event that has usually preceded a market bottom in previous cycles,” Moreno concluded.
Miner sales have been closely monitored this month, with the @Bitcoin Twitter account even describing the situation as miners “losing their coins.”
— Bitcoin (@Bitcoin) June 18, 2022
“It’s time for miners to decide whether to stay or leave,” said CryptoQuant CEO Ki Yong Joo. added in a Twitter thread last week.
The situation is tense, but the majority of miners remain active, as evidenced by the drop in the main network indicators. only slightly from record highs of more than 30 trillion.
Mixed signals on the interest of buyers
However, when it comes to other large BTC holders, the picture is less clear.
It’s ‘stupid’ to deny that the price of bitcoin could fall below $10,000 – analysis
After the whales bought up about $19,000 worth of liquidity, CryptoQuant’s Key this week marked the emergence of “new” big companies.
He noted that the outflow of funds from the major US exchange Coinbase reached its highest level since 2013.
Time to welcome new ones #Bitcoin whales.
— Ki Young Joo (@ki_young_ju) June 23, 2022
Trader and analyst Rekt Capital, however, once again expressed doubts about the strength of the overall buying volume, arguing that the sellers, on the contrary, still drive the market.
The 200-week moving average (MA) of Bitcoin, a key support level during previous bear markets, has yet to generate significant buying interest despite the spot price being about $2,000 below it.
“Current BTC buying volume after the extreme surge in selling volume is still lower than subsequent 2018 bear market buying volume levels on the 200-week moving average. Not to mention that the purchase on the side will be completed in March 2020,” he said. said Followers on Twitter.
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Credit : cointelegraph.com