Benzinga - Popular crypto analyst Will Clemente has said that we are entering into a Bitcoin (CRYPTO: BTC) miner capitulatory period. The capitulatory period refers to a string selling activity, where investors — in this case, miners — give up their positions and sell their holdings as quickly as possible.
What Happened: Clemente said the declining mining hash rate and Hash Ribbon bearish cross indicate that we are “indeed in a period of miner capitulation.” Hash Ribbon is an indicator that identifies where Bitcoin miners are in distress.
Bitcoin miners have been selling relatively aggressively.According to Hash Ribbons indicators, miner participation in the Bitcoin network is again becoming unsustainable. Historically this has been a leading indicator of miner capitulation.Combined with the hash rate decline and thus today's hash ribbon bearish cross, this indicates we are indeed in a period of miner capitulation. pic.twitter.com/vVnqetYbn9
— Will Clemente (@WClementeIII) November 28, 2022
See More: Best Crypto Apps
Another analyst Dylan LeClair warns that the hash rate seven-day moving average is now 13.7% off all-time highs and mining difficulty is projected to adjust -9% a week from now. Lesser hash rate means less computing power is required to verify transactions on a blockchain. This means more miners are now exiting the blockchain.
#Bitcoin hash rate is starting to turn over here. Hash rate 7d moving average is now 13.7% off all-time highs; mining difficulty is projected to adjust -9% a week from now.Price Action: At the time of writing, apex crypto BTC was trading at $16,479, up 1.78% in the last 24 hours, according to Benzinga Pro.Early stages of another miner capitulation by the looks of it. pic.twitter.com/79aw6OF7uo
— Dylan LeClair (@DylanLeClair_) November 28, 2022
Read Next: Dogecoin Shines As Bitcoin, Ethereum Muted — Chartist Says 'Break Above' This Level Presents 'Great Long Opportunity' For DOGE
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.