Analysis: The Bitcoin miner capitulation phase is nearing its end, which may indicate that Bitcoin's price has bottomed out.

PANews February 25 News, according to CoinDesk, Glassnode data shows that the Hash Ribbon indicator is close to signaling the end of a three-month miner capitulation, one of the longest in history. When the 30-day moving average of hash rate rises above the 60-day moving average, a recovery signal will be triggered, indicating miners are coming back online and network pressure is easing. Since the indicator first reversed in November last year, Bitcoin has fallen from about $90,000 to a low of $60,000 in early February, and is now rebounding to around $65,000.

The Hash Ribbon indicator is based on the comparison of the 30-day and 60-day moving averages of hash rate. Miner capitulation occurs when mining revenue falls below operational costs, causing inefficient miners to shut down and sell Bitcoin holdings, leading to a decrease in hash rate and increased market selling pressure. Historically, such capitulations often coincide with local or major bottoms, including January 2015, December 2018, and December 2022. Currently, Bitcoin’s trading price is below the estimated average production cost of $66,000. The last time this happened was in November 2022, when Bitcoin bottomed around $15,500.