Getting the bottom of the desired bitcoin requires more analysis than its prices. One of the most reliable market level indicators throughout history has been data analysis. Miners, often considered one of the most resilient players in the crypto ecosystem, only give up when Bitcoin is more expensive than mine.Hash bands are a unique indicator used to determine whether the market is currently in a bearish or bullish phase. This indicator consists of the 30-day and 60-day Simple Moving Average (SMA) of the Bitcoin Hash Rate. A 30-day SMA falling below the 60-day indicates the start of a bear market and indicates that miners are beginning to surrender. The data shows that the market has been in a minor surrender mode for almost 60 days. Once the 30-day SMA crosses the 60-day SMA, the worst part of the mining cap will be over. However, divergences between moving averages can persist for several days and it can be difficult to tell when we might be able to reverse the trend.
However, an analysis of mining stocks shows that the worst is over and miners are starting to recover. Miners look at the general distribution of addresses that miners own to determine whether or not to sell their assets. According to Glassnode data, miners’ reserves have recovered from the lowest level in June and reached the highest level since October 2017 (marked in red). As balances recovered, we also saw mining outflows from transactions briefly exceed inflows to exchange addresses (highlighted in black). This shows that more miners have withdrawn their BTC from exchanges than have invested it to sell on the market. The difficulty suggests that Bitcoin may have bottomed out. Defined as the current estimated number of hashes required to mine a block, the difficulty increased by 1.7% for the first time since June. This increase suggests that the difficulty of mining Bitcoin may have decreased in early August. If Bitcoin can hold its price at the $23,000 resistance, we won’t see such a drop in mining difficulty anytime soon. Storm Multi showed good care for previous bike bottles – November 2011, January 2015, November 2018 and May 2020. Puel Multine shows the data that first left the green area. June and slowly and recorded. Although the index has moved in and out of the green zone in previous market cycles, the outlook remains positive.