Key Facts: The mining capitulation is nearing its end, implying less selling pressure. The price remains strong around $58,000. With bitcoin (BTC) trading for the fifth consecutive day around $58,000 (USD), after falling to lower levels, the market is showing positive signs. According to market analyst Willy Woo, There are many signs that reflect that bitcoin is at the bottom of the price pullback. Based on this, the analyst considered that «it is not a bad time to accumulate sats [unidad de cuenta de BTC]”. “Germany ran out of coins,” he said as one of his arguments. The government of this country sold in the last three weeks the 50,000 BTC that it had seized at the beginning of 2024. Therefore, as BitcoinDynamic reported, the downward pressure on the price by this actor ended. In addition to this, Woo added that Signs are beginning to appear that the mining capitulation it is coming to its endas the hash rate is increasing. When this metric, which refers to the processing power for mining bitcoin, grows, it shows that the number of miners joining the network is increasing. This movement reflects that sales are falling by miners who closed their operations by liquidating their BTC to cover expenses due to lower profitability. This type of phenomenon occurs due to situations such as the halving, an event that reduced their rewards by half three months ago. This scenario can be observed using the Bitcoin Hash Ribbons indicator, displayed below. It shows that when the short-term moving average of the hash rate crosses above the long-term one, it reflects an increase in mining activity, which is positive for the market.
Bitcoin Hash Ribbons Indicator. Source: Willy Woo. Meanwhile, the amount of bitcoin on cryptocurrency exchanges continues to decline. This behavior usually translates into low investor interest in selling, higher prospects for accumulation in the medium and long term, and less supply available to buy.
Bitcoin's balance on exchanges. Source: Coinglass. Amidst this, as BitcoinDynamic reported, demand for bitcoin exchange-traded funds (ETFs) has been growing over the past week, contributing to the price rise. According to the analysis firm Nodecharts, it maintains that the key level to watch currently is USD 58,000. If it does not consolidate above and seeks USD 60,000-62,000 again, it maintains that the market could retest USD 52,000-50,000, an area that acted as support-resistance before the current lateralization. For Nodecharts, it is necessary for the demand for ETFs to continue for bitcoin to head towards higher prices. Because its accumulation in the last week has been at an average price of around USD 58,000, this level can become psychological support.