In fact, the price of bitcoin has been on a bullish streak over the past few weeks, returning to its previous highs that most investors have become accustomed to. However, last week was somewhat quiet for the leading cryptocurrency, as it was for most of the digital asset market.
Interestingly, the latest on-chain data suggests that the cryptocurrency market, specifically the bitcoin market, might not remain dormant for long.
btc Price Momentum Turns Positive – Price Impact?
In a recent post on the x platform, popular cryptocurrency expert Ali Martinez x.com/ali_charts/status/1817150968678523141″ target=”_blank” rel=”nofollow”>revealed that bitcoin miners’ capitulation has seemingly come to an end. This on-chain observation is based on a change in the Glassnode Hash Ribbon indicator, which measures btc’s hash rate.
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Typically, the hash ribbon features two moving averages, which include the short-term (30-day) and long-term (60-day) hash rate. A crossing of the short-term moving average below the long-term moving average implies miner capitulation, which is characterized by widespread selling by miners.
On the other hand, when the 60-day ribbon falls below the 30-day one, it signals the end of capitulation and the possible start of a recovery phase for the network. As shown in the chart below, this positive crossover seems to be the current state of affairs for bitcoin, indicating an optimistic future for the flagship cryptocurrency.
Ultimately, this means that bitcoin miners are returning to the network and restarting operations as they become more profitable. From a historical standpoint, the end of miner capitulation is a bullish sign, as it typically precedes significant price jumps for the leading cryptocurrency. Martinez highlighted this in his post on x, saying that “this could present some nice buying opportunities.”
Another indicator that supports this on-chain revelation is the bitcoin Miner Profit/Loss Sustainability metric, which measures how fair miners' revenues are. According to the latest data CryptoQuant databtc miners have been taking some profits over the past few days, putting them in the fairly paid region of the indicator.
bitcoin price at a glance
At the time of writing, the bitcoin price is hovering around $68,230, reflecting a mere 0.7% increase over the past 24 hours. As deduced 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 price of btc barely increased by 1% over the past week. Nevertheless, the cryptocurrency maintained 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
