Data from an on-chain analysis firm suggests that Bitcoin miners’ capitulation may be ending, signaling the onset of a potential bull market for Bitcoin. As Bitcoin shows signs of recovery, currently trading at $60,456 with an approximate 2.8% increase in the last 24 hours, the overall market sentiment is turning positive.
CryptoQuant highlights the Hash Ribbons indicator, which has just signaled the end of miner capitulation, coinciding with the Hash Rate reaching a new peak of 638 exahash per second. This development marks the first such rebound since the Bitcoin halving. According to CryptoQuant, a reduction in selling pressure from miners often precedes higher prices.
In late June, high operational costs had led to significant miner capitulation. From January to August 2024, miners sold around 28,018 BTC. With decreasing economic pressures, miners no longer need to sell mined Bitcoin to cover expenses, allowing them to hold their Bitcoin reserves.
Additionally, on-chain demand for Bitcoin suggests that the BTC consolidation phase may be nearing its end. The average daily token transfer volume increased, coinciding with Bitcoin’s price stabilization, indicating solid demand. Analysts believe that BTC is approaching the final phase of market consolidation, supporting an impending bull market outlook.
The average cycle starts 170 days after the Bitcoin halving, and currently, we are at day 121, suggesting that a bull market might be on the horizon.
