Over the past week, Bitcoin’s price suffered a significant setback in its goal of regaining the six-figure threshold. The flagship cryptocurrency is hovering around $90,000 as the market seems unable to make a decision on the next price direction.
As Bitcoin faced a mild sell-off, which in turn caused the price to fall from recent highs, specific market participants were under severe pressure, including miners. Interestingly, a recent on-chain review has raised the possibility that miners’ stress could end soon.
Miner’s financial health flashes classic reversal sign
In a Jan. 23 post on the social media platform X, market expert Axel Adler Jr. said marked that Bitcoin miners may have begun their post-capitulation recovery journey. The relevant indicator here is the Miner Financial Health Index (7D-SMA).
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For context, this statistic tracks the balance between miners’ revenues and miners’ selling pressure. So it reflects whether miners are net BTC distributors or accumulators. Simply put, the metric shows whether Bitcoin miners are under pressure, stable or even profitable.
Capitulation events often reflect the Miner Health Index as a negative value because the amount of BTC issued is greater than the amount of BTC earned. On the other hand, miners are usually said to be in the recovery phase when the balance between income and expenses starts to deviate from the negative.
The chart shared by the analyst shows that the index has taken an upward trend, targeting neutral levels on the metric’s charts. History shows that the index does not simply focus on the neutral point when it is trending upward.
So, if history were to repeat itself, Bitcoin miners could be in for a rewarding ride after surviving the most recent capitulation. Interestingly enough, the price of Bitcoin appears to have a directly proportional relationship with the Miner Health Index.
Bitcoin price is gaining strength as market conditions change
In a separate post on X, Bitcoin Vector marked that Bitcoin could gain strength for a major near-term move. According to the analysis platform, this development coincides with the exit from the market from a previously ‘risky environment’.
Bitcoin Vector explained that this exit from a risky market environment was last seen in April 2025, just before the bull run resumed. The on-chain analytics firm explained that we could be witnessing the late stages of a classic momentum bottom pattern, which historically leads to large rallies.
Essentially, there needs to be one final price drop and a simultaneous momentum boost to the upside before the bullish signal can be fully formed. At the time of writing, Bitcoin is valued at around $89,830, with no significant movements in the last 24 hours.
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Featured image from iStock, chart from TradingView