Bitcoin Hash Ribbon has formed a bearish cross, confirming an actual capitulatory period for miners.

The falling prices of Bitcoin and the current market situation have triggered what appears to be the actual Bitcoin miners’ capitulation, based on the Hash Ribbons Indicator. On-chain analyst Will Clemente spotted that the indicator has formed a bearish cross, which confirms “we are indeed in a period of miner capitulation.”

Bitcoin Miners Capitulation Periods Has Been Confirmed

The Hash Ribbons indicator is used in projecting market periods when Bitcoin miners are distressed and may be weeding out. The indicator has initiated a bearish cross, which is evident given the low price of Bitcoin and the reversal in the network’s hash rate, which consequently affects mining profitability (hash price).

“We are potentially entering into a double dip miner capitulatory period. Hash ribbons have just initiated a bearish cross, historically this has been a leading indicator of miner capitulation,” Clemente said.

Bitcoin’s mining hash rate has dropped from 273 EH/s to 234 EH/s, representing a more than 14% decrease within 30 days. This entails that more miners are beginning to shut down operations. The trend will likely continue based on the Hash Ribbon indicator, although the mining difficulty is expected to adjust accordingly in the coming week.

A Bitcoin Macro Bottoms is Imminent

Down the line, miners could become aggressive with BTC selling which could drag Bitcoin’s price further down. However, the silver lining to the capitulatory period is that it can often form areas of macro bottoms for the Bitcoin price, which is a good buying opportunity in the long term.

“When miners give up, it is possibly the most powerful Bitcoin buy signal ever,” said Hash Ribbons’ author, Charles Edwards.

At the time of writing, Bitcoin was slightly up over 1.7% to $16,509. The price crashed by more than 20% earlier this month following the collapse of FTX, which still has a negative ripple effect on crypto mining and the larger market.

（By Ibiam Wayas）