BTC Hash Ribbon indicator signals miner capitulation could be almost over


Bitcoin (BTC) holders had it tough in 2022, but it was an even tougher year for BTC mining — mining stocks fell over 80%, and mining company bankruptcies solidified the bear market — but the worst of miner capitulation could be over, according to CryptoSlate analysis.

With BTC price down 75% from its all-time high (ATH), the hash rate too reached an all-time high as miners increased efforts to ensure profitability in the energy crisis.

Bitcoin: Hash Ribbon (Source: Glassnode.com)

BTC Miner capitulation decreasing

The Hash Ribbon indicator chart above indicates that the worst of miner capitulation is over when the 30-day moving average (MA) crosses the 60-day MA — switching from light-red to dark-red areas.

When this paradigm shift occurs, a switch from negative to positive price momentum is expected, which historically reveals good buying opportunities (switching from dark-red back to white).

It is suggestive that the worst of miner capitulation is almost over as BTC turns bullish and breaks out towards $19,000, according to Glassnode data in the chart above analyzed by CryptoSlate.

Bitcoin: Miner Balance (Minus Patoshi and Other) – Source Glassnode.com

BTC miner supply sell pressure abating

The total supply of BTC currently held in miner wallets has hit roughly 1.8 million BTC after a drawdown of roughly 30,000 BTC. This doesn’t directly indicate that the BTC was sold but could, in fact, have been moved to another wallet for long-term storage.

Meanwhile, miner spending has drastically decreased as transfer volume from miners to exchanges falls greatly, as shown in the chart below.

Bitcoin: Transfer Volume from Miners to Exchanges – (Source: Glassnode.com)

Miner sell pressure has reached its lowest in the last three years as less than 100 BTC is being sold on a seven-day MA. When compared to the vicious drawdown in 2022 — where miners were spending more BTC than was being mined — all charts indicate selling pressure is set to switch to buy pressure.

Bitcoin: Miner Percent Mined Supply Spent – (Source: Glassnode.com)

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