BTC Hash Ribbon Indicator Indicates Miner Capitulation Might Be Nearly Over

Bitcoin (BTC) holders struggled in 2022, but it was an even tougher year for BTC mining: mining stocks plunged more than 80% and mining company bankruptcies solidified the bear market, but the worst of the The miners’ capitulation could have happened, according to CryptoSlate Analysis.

With the BTC price 75% below its all-time high (ATH), the hash rate has also hit an all-time high as miners ramped up their efforts to ensure profitability in the energy crisis.

Bitcoin: Hash Ribbon (Source: Glassnode.com)

BTC Miner Capitulation Decrease

The Hash Ribbon indicator chart above indicates that the worst of miner capitulation is over as the 30-day MA crosses the 60-day MA, turning from light red to dark red areas.

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

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

Bitcoin: Miner Balance (minus Patoshi and others) – Source Glassnode.com

BTC Miners Supply Selling Pressure Decrease

The total supply of BTC currently in miners’ wallets has reached approximately 1.8 million BTC after a reduction of approximately 30,000 BTC. This does not directly indicate that the BTC was sold, but it could, in fact, have been moved to another wallet for long-term storage.

Meanwhile, miner spending has fallen sharply as the volume of transfers from miners to exchanges drops sharply, as shown in the chart below.

Bitcoin: transfer volume from miners to exchanges – (Source: Glassnode.com)

Selling pressure from miners has reached its lowest level in the last three years, with less than 100 BTC being sold in a seven-day MA. Compared to the vicious drawdown in 2022, where miners spent more BTC than was mined, all charts indicate selling pressure will change to buying pressure.

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