Bearish Clouds Haunt the BTC Price Rally, Will Bitcoin Be Stuck Under Miners’ Capitulation?

Bearish Clouds Haunt the BTC Price Rally, Will Bitcoin Be Stuck Under Miners’ Capitulation?

Bitcoin’s price fell below $17,000 after holding steady on the previous trading day. Meanwhile, Bitcoin (BTC) hash rate has also declined as the miner continues to struggle as the price undergoes a massive correction phase. In addition, the BTC mining difficulty is expected to improve significantly. According to the new update released by a popular on-chain data provider, Glassnode, the Bitcoin network has reduced difficulty by more than 7%, which is the biggest win in the past. 12 months. “The Bitcoin protocol just reduced the mining difficulty by -7.3%, the biggest downward correction since July 2021”, “With currency prices falling, rising energy costs and debt burdens, the mining industry is under extreme stress,” “On the other hand, Bitcoin’s hash tape indicator also suggests that the crypto for another massive crash is pending.

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The image above shows that the hash tape is closer to the reverse. When hash tapes were reversed, Bitcoin’s (BTC) price underwent a significant correction. Therefore, a similar action is being speculated as the difficulty adjustment appears in response to the BTC hash rate drop. “The difficulty adjustment is in response to the Bitcoin hash rate drop. 

The last hash ribbon reversal occurred in early June 2022: “Furthermore, bitcoin price is showing a significant swing up and down from the $17,000 levels.” this shows that the net sum of capital inflows and outflows has declined sharply. Capital inflows since May 2021 have been phased out, indicating a capital reset is underway.

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