Bitcoins Value Falls Under 59000 Amidst Miner Surrender Signals
Bitcoin has experienced a significant drop below $59,000, indicating a strong sell-off, with analysts at QCP suggesting that miner capitulation could signal a potential market bottom.
The leading cryptocurrency, Bitcoin (BTC), is grappling with heavy selling pressure, falling below the important $60,000 support level and reaching lows of $57,875, signifying a significant downturn as it struggles to maintain stability amidst market volatility. In a recent research note, QCP analysts observed signs of miner capitulation, which historically suggests a price bottom.
Despite the widespread sell-off in the crypto market, the analysts pointed out that the options market remains positive, noting a strong interest in Ethereum call options for September and December expiries, indicating a bullish sentiment for ETH despite Bitcoin’s struggles.
QCP analysts also identified various factors that could potentially reverse the current downtrend. Both Bitcoin and Ethereum have substantial liquidation clusters on the top side, which could trigger short squeezes and drive prices higher. Additionally, the approval of S-1 forms could lead to a significant bounce in ETH.
As reported by crypto.news, the total amount of cryptocurrency liquidations has more than doubled over the past day, with the global market capitalization dropping to its lowest point in two months. Data from Coinglass shows that total crypto liquidations surged by 114% in the past 24 hours, reaching $265 million.
In an exclusive interview with crypto.news in May, CryptoQuant’s head of research, Julio Moreno, suggested that the market is likely to witness miner capitulation if prices do not recover significantly during the summer, noting that the hash price is consistently making new lows following the latest halving.
According to Kaiko, Bitcoin’s halving is unlikely to impact its price in the next 18 months.
