Could miner capitulation see bitcoin fall?

• One crypto commentator has pointed out that BTC can still hit the floor even though it’s bullish momentum may say otherwise…
• The analyst in question, @mansasuma believes that this would be as a result of miner capitulation which is happening right now.

Despite the recent surge in price for the leading crypto coin, one crypto commentator has pointed out that BTC can still hit the floor even though it’s bullish momentum may say otherwise…

The analyst in question, @mansasuma believes that this would be as a result of miner capitulation which is happening right now.

Capitulation Is what happens in the cryptocurrency world when mining is no longer a profitable option. As the profits started to dry up, many miners are forced to capitulate as they still have most of the bitcoin holdings which helps them cover the costs. Following this, selling pressure is increased and a drop in the network hash rate occurs.

Throughout March, we saw a massive 50% drop in the price of BTC with the harsh rate dropping from a high of over 130TH/s to 80TH/s. Even though the price has recovered since, it has led to many commentators to speculate on the future.

Although he noted that this isn’t an unusual occurrence during a Bull market and that the current set up is not indicating any strong divergence. This calls for a death job like the one we saw at the start of 2018.

On Twitter, he said the following:

... the hash ribbons actually say miner capitulation is happening as we speak

While you can get a sell signal on these ribbons during bull markets as well, on those setups the MAs aren´t strongly diverging; if they are we get a 2018 type death drop

We have the same setup now pic.twitter.com/3BKB4iuKvS

— Mansasuma (@mansasuma) April 6, 2020

It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!