Bitcoin price has lost 16% since Jan. 19, with sales finding support at the $34,820 low. Falling prices affect miners as well as investors. Miner capitulation is when smaller mining operations are “backed up” when the price of Bitcoin drops and mining equipment becomes technologically obsolete. In this post, let’s take a look at the technical comments and concerns about miner capitulation from 4 expert crypto analysts.
Are the bottom prices confirmed?
Bitcoin had 4 consecutive bleeding days between 19-22 January. Although the ATH level has corrected 47% from $69,000, analysts advise not to rush to buy the bottoms. Although the leading crypto corrected heavily last week, BTC futures open interest remains high. Historical trends suggest that Bitcoin is not yet finished correcting unless the OI turns neutral or turns negative.
Bitcoin price prediction
On the technical chart, BTC closed daily below the $ 36.5 thousand level. This is the lowest daily close since July 25, 2021. “BTC Ninja” on Twitter shares that Bitcoin closed below the 0.789 Fib level. Therefore, Bitcoin is expected to drop to $33,000 and even lower.
Bitcoin miner capitulation coming?
Bitcoin miners have been accumulating heavily so far in the last correction. The data shows that miners have accumulated over 6,000 BTC in the past two weeks as BTC corrected from $45,000 to $38,000. However, currently the BTC miner production cost is very close to $34,000. Now, if BTC price continues to correct further, we could see heavy selling and capitulations from BTC miners. While BTC was trading around $42.00 last week, crypto analyst Venturefounder wrote:
Bitcoin’s worst ever dips were due to miners’ capitulation (December 2018, March 2020), at risk for miner capitulation as BTC fell below production costs BTC was at risk for miner capitulation at $30,000 in May. Current production cost is 34 thousand dollars, 20% below current price.
Bitcoin’s relationship with Nasdaq reaches ATH
The current correction in crypto follows broader sell-off in the US stock market. cryptocoin.com Popular market analyst Will Clemente, whose analysis we share with you, says:
This week Bitcoin’s correlation with the Nasdaq hit the ATH level. Without a catalyst to cause BTC-specific flows, for now, it follows risk aversion behavior from high beta stocks.
- On the other hand, the S&P 500 fell below the 200-DMA. According to analysts, this could lead to more liquidations in the crypto market, thus creating a possible Ripple effect. Along with Bitcoin, the altcoin market is also experiencing a brutal correction.
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