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.
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Bitcoin miners have been selling relatively aggressively.
— Will Clemente (@WClementeIII) November 28, 2022
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
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.
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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.
— Dylan LeClair (@DylanLeClair_) November 28, 2022
Early stages of another miner capitulation by the looks of it. pic.twitter.com/79aw6OF7uo
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.