Investigative work argues that on-chain metrics are proving miners have
capitulated, while whales appear to be lone Bitcoin dip-buyers.
Bitcoin (BTC) miners may have already sparked a “capitulation event,” fresh analysis has concluded.
In an update on June 24, Julio Moreno, senior analyst at on-chain data firm CryptoQuant, hinted that the BTC price bottom could now be due.
BTC price bottom “typically” follows miner capitulation
Miners
have seen a dramatic change in circumstances since March 2020, going
from unprecedented profitability to seeing their margins squeezed.
The dip to $17,600 — 70% below November’s all-time highs for BTC/USD — has hit some players hard, data now shows, with miner wallets sending large amounts of coins to exchanges.
This, CryptoQuant suggests, precedes the final stages of the Bitcoin sell-off more broadly in line with historical precedent.
“Our
data demonstrate a miner capitulation event that has occurred, which
has typically preceded market bottoms in previous cycles,” Moreno
summarized.
Miner sales have been keenly tracked this month, with the Bitcoin Twitter account even describing the situation as miners “being drained of their coins.”
“For miners, it's time to decide to stay or leave,” CryptoQuant CEO, Ki Young Ju, added in a Twitter thread last week.
The situation is tenuous, but the majority of miners remain active, as witnessed by network fundamentals dropping only slightly from all-time highs of over 30 trillion.
Mixed signals over buyer interest
When it comes to other large BTC holders, however, the picture appears less clear.
Related: 'Foolish' to deny Bitcoin price can go under $10K — Analysis
After whales bought up liquidity near $19,000, CryptoQuant’s Ki this week heralded the arrival of “new” large-volume entities.
Outflows from major United States exchange Coinbase, he noted, reached their highest since 2013.
Trader and analyst Rekt Capital, nonetheless, reiterated doubts about
the strength of overall buyer volume, arguing that sellers were
conversely still directing market movements.
Bitcoin’s 200-week moving average (MA), a key support level
during previous bear markets, has yet to see significant interest from
buyers despite the spot price being around $2,000 below it.
“Current
BTC buy-side volume following the extreme sell volume spike is still
lower than the 2018 Bear Market buyer follow-through volume levels at
the 200-week MA. Let alone March 2020 buy-side follow-through,” he told Twitter followers.
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