TL;DR
- Bitcoin mining hashrate has shown a significant rebound after a recent drop.
- The “Hash Ribbons” signal suggests the end of a phase of miner capitulation.
- BTC is currently trading around $59,400, with expectations of improvement in the market.
Bitcoin (BTC) mining hashrate has seen a notable uptick in recent days, suggesting renewed optimism among miners.
This metric, which measures the total computing power used to mine Bitcoin, had fallen to roughly 610 million terahashes per second (TH/s) at the start of the month, after hitting an all-time high of 667 million TH/s in late July.
This drop coincided with a moment of decline in the BTC market, when the price of the asset fell below $50,000, negatively affecting the profitability of miners.
The reduction in profitability led some miners to disconnect their equipment, resulting in a decrease in hashrate.
However, over the past week, the 7-day moving average of the hashrate has shown a recovery, reaching around 650 million TH/s.
This increase suggests that miners are once again expanding their operations, possibly betting on an improvement in market conditions in the near future.
One of the most relevant indicators for assessing the miners’ situation is the “Hash Ribbons,” which tracks the relationship between the 30-day and 60-day moving averages of the hashrate.
Recently, this indicator flashed a capitulation signal when the 30-day moving average fell below the 60-day moving average, which has historically been an indication of stress among miners and potential bottoms in the BTC price.
However, in recent days, the 30-day moving average has crossed back above the 60-day one, indicating that the capitulation phase may be over and that miners are resuming their activity with greater force.
Positive signs for the Bitcoin market
While the recovery in hashrate does not guarantee an immediate increase in the price of Bitcoin, it is an indication that miners are finding the current environment more favorable, which could reduce selling pressure in the market.
Historically, when miners start to unplug their equipment, it is usually a sign that the price has hit a low point, while an increase in hashrate suggests increased confidence in the stability or improvement of Bitcoin’s value.
In this context, the recent recovery in hashrate, coupled with the positive signal from the Hash Ribbons, could be seen as an early sign of a change in the market trend.
Although BTC is still below the levels reached at the end of July, the rebound in mining activity is a factor that could positively influence its price in the short to medium term.
For now, Bitcoin is trading around $59,400, which represents a notable recovery since its recent drop, although still far from all-time highs.
The mining community, a key component of the BTC network, appears to be betting that market conditions will improve, which could be a harbinger of future increases in the cryptocurrency’s value.
