Bitcoin price has soared in recent weeks, returning to the former highs that most investors have become accustomed to. However, this past week has been a somewhat quiet one for the major cryptocurrency, as well as most of the digital asset market.
Interestingly, the latest on-chain insights suggest that the crypto market, and the Bitcoin market in particular, may not be dormant for too long.
BTC Price Momentum Shifts to Positive – Impact on Price?
In a recent post on the X platform, popular crypto expert Ali Martinez said revealed that the capitulation of Bitcoin miners has seemingly come to an end. This on-chain observation is based on a shift in the Glassnode Hash Ribbon indicator, which measures BTC’s hash rate.
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Typically, the Hash Ribbon has two moving averages; including the short-term (30 days) and long-term (60 days) hash rate. If the short-term moving average falls below the long-term average, it implies miner capitulation, which is characterized by widespread sell-off by miners.
On the other hand, when the 60-day ribbon falls below the 30-day ribbon, it signals the end of the capitulation and the potential beginning of a recovery phase for the network. As shown in the chart below, this positive cross appears to be the current situation for Bitcoin, indicating an optimistic future for the flagship cryptocurrency.
Ultimately, this means Bitcoin miners will return to the network and restart their operations as they become more profitable. From a historical point of view, the end of miner capitulation is a bullish sign, as it often precedes significant price increases for the main cryptocurrency. Martinez highlighted this in his post on
Another indicator supporting this on-chain revelation is the Bitcoin Miner Profit/Loss Sustainability metric, which measures how fair miners’ earnings are. According to the latter data from CryptoQuantBTC miners have made some profits in recent days, putting them in the moderately paid region of the indicator.
Bitcoin price at a glance
At the time of writing, Bitcoin’s price is around $68,230, reflecting an increase of just 0.7% in the past 24 hours. As inferred earlier, the leading cryptocurrency had a quiet week in terms of price action, hovering between $64,000 and $68,000.
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According to data from CoinGecko, the BTC price has risen by just 1% over the past week. Nevertheless, the cryptocurrency retained its position as the largest digital asset in the sector, with a market capitalization of over $1.33 trillion.
Featured image from iStock, chart from TradingView