- Bitcoin might plunge in the medium-term
- Hash Ribbons see a bearish crossover
- If history repeats itself, Bitcoin price might plunge by 50 percent
Bitcoin News Today – Bitcoin (BTC) is still struggling below the $9k level. The $9k level has been its major resistance for some days now. Bitcoin (BTC) is currently trading around the $8,600 range, after a decrease of about two percent over the past day. However, chances are the digital currency might plunge even further very soon. An indicator that keeps track of the health of the Bitcoin mining ecosystem just flashed bearish for the first time this year, which signals a forthcoming capitulation.
Bitcoin Hash Ribbons Make a Bearish Crossover
A few weeks ago, the price of Bitcoin (BTC) increased by 42 percent from $7,300 to around $10,500 in one day. That was the fourth-largest upward movement the digital currency has ever experience since its emergence. Unfortunately for the bulls, this massive upsurge in the price of the digital currency did not do much to reverse a medium-term bearish trend that has formed over the past couple of months. Despite the massive upsurge, a key selling signal just flashed.
Bitcoin (BTC) Price Today – BTC / USD
Recently, Cole Garner, a digital currency commentator, pointed out that an indicator tracking the health of the hashrate of Bitcoin – the Hash Ribbons – has just seen a bearish crossover. This might not mean much at the moment. However, the last time the bearish crossover was seen was just before the price of Bitcoin (BTC) broke below the $6k level. Hence, this is a bearish signal.
Miner capitulation warning!
Hash ribbons have confirmed a crossover.
Last time this happened was a year ago, just before $BTC broke down from $6k.
I have to step out, will explain in more detail tomorrow, but TL;DR this is a BEARISH signal.
Move slow…but manage risk. pic.twitter.com/1v4ctkSKiq
— Cole Garner (@ColeGarnerBTC) November 15, 2019
Will Bitcoin (BTC) Miners Give Up?
Preston Pysh – Bitcoin bull and industry podcaster – recently tweeted a chart to better illustrate the importance of miners surrendering. According to the chart of the Bitcoin (BTC) bull, the mining capitulation was seemingly what pioneered the massive plunge in the price of Bitcoin from $6k to $3k late last year. The decrease in the price of the digital currency was drastic, as it lost 50 percent of its value in a short timeframe.
— Preston Pysh (@PrestonPysh) November 14, 2019
If history repeats itself, the price of Bitcoin (BTC) would likely fall by 50 percent in the coming weeks to find a bottom. This is even more likely to happen as miners are beginning to shut down their operations and sell their stashes to keep the light on. The news about the forthcoming capitulation in the Bitcoin’s miner market comes after the BTC network saw a huge difficulty plunge of about 7 percent. This is the largest difficulty drop seen since the last capitulation of 2018. In fact, according to mining indicators, we are seeing a redux of last year’s Crypto Winter.