of bitcoin [BTC] The standings revolve around investors and hodlers, but it also depends on BTC miners. Unlike relying solely on broad market signals, bitcoin enthusiasts should also pay attention to the behavior of miners.
At the moment, miners are responsible for creating the environment that may be necessary to propel the king coin through a bear market.
Miners on a bear hunt?
Bitcoin recently dropped to $17.5k at one point, with the market falling heavily over the past few months. However, everything soon changed for the crypto, pushing BTC back to trade at $21.3k on the charts.
Despite the small recovery, miners have begun to capitulate, which is usually the last leg of a bear market. Miner surrender typically occurs when the value of bitcoin as a reward falls below the value of the miner operating or mining the bitcoin.
As a result, miners shut down or shut down their mining equipment and sell off their supply of BTC in order to make up for the loss.
Although this may sound alarming, there may be some hope. Ongoing capitulation may eventually help weed out weaker miners, leaving the charge to stronger miners who avoid giving in to market selling pressure. Ultimately, this leaves BTC in a position where crypto can recover from its crash.
Furthermore, according to Hash Ribbon, miners have begun to capitulate after the 60-day EMA crossed the 30-day EMA.
This can be further verified by the recent sales spree started by the miners. In fact, in May alone, 4.271k BTC worth $91.21 million were sold.
Gearing for the bull?
Bitfarms, one of the largest bitcoin mining companies in the world, sold nearly 3k BTC for $64 million in June to boost liquidity. Regardless, once the hash ribbon movement reverses itself, the miner surrender will end and only then can BTC start climbing the ladder.
Something similar was observed in August 2021 when the 30-day MA was crossed. For the next three months, bitcoin rebounded, reaching its all-time high of $67.5k.
If Bitcoin intends to reclaim its highs, it will need to rally to 222% (ref. bitcoin price action image)Which would be possible only because of the hunting of a full grown bear.