Bitcoin (BTC) on the Net: Miners Indicator Points to Surrender – BeinCrypto

To be[in]Cointelegraph has studied Bitcoin (BTC) network indicators for miners, including difficulty tape compression and hash tape.

Bitcoin Difficulty Tape Compression

The Difficulty Tape is a network indicator based on moving averages (MA) of Bitcoin mining difficulty. The complexity tape compression then adds a standard deviation to better determine if the market is near the bottom or the floor.

Throughout its history, values ​​from 0.01 to 0.02 have been associated with bottoms.

In May 2022, this indicator moved into the oversold zone (<0.05) and currently stands at 0.0162. The only other time it showed below that was in January 2021 at 0.0137.

Interestingly, the previous three market cycles (black circles) were achieved at higher values.

To be more precise, the 2015 low is at 0.024, the 2018 low is at 0.019, and the 2020 low is at 0.020.

So, because of this data, the Difficulty Ribbon Compression indicator suggests that the price of bitcoin is close to the bottom.

Difficulty Ribbon Chart – Glassnode

Bitcoin hash tape

The hash tape indicator helps to determine if the miners have capitulated. Miners surrender occurs when the reward for mining cryptocurrency is lower than their fees.

The chart shows this phenomenon when the 30-day moving average (MA, green) crosses over the 60-day moving average (blue). This creates a light red area that turns dark red in the event of a bullish crossover.

In price history, these crossovers were followed by significant upward moves.

Hash Tape Chart – Glassnode

Further analysis of the movement shows that the bearish crossover occurred on June 7th. Thus, this transition has existed for 42 days. The current bottom of BTC was reached 11 days after this crossing, on June 18th to be exact.

In 2015 (black circle), the transition lasted 40 days. However, the bottom was reached 25 days after the crossing.

In 2018 (blue circle), the transition lasted 61 days. However, the bottom was reached after 45 days.

Finally, in March 2020 (yellow circle), the transition lasted 36 days. It is interesting to note that the bottom was reached five days before this transition.

So, based on this data for the current movement, it is possible that the cross will continue for about 20 more days, but it is also possible that the bottom has already been reached.

Hash Tape Chart – Glassnode

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