{"id":129863,"date":"2020-04-06T16:45:53","date_gmt":"2020-04-06T15:45:53","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=129863"},"modified":"2020-04-25T09:27:48","modified_gmt":"2020-04-25T08:27:48","slug":"data-metrics-surrounding-bitcoins-miner-dynamics-all-point-to-a-long-term-bottom","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/data-metrics-surrounding-bitcoins-miner-dynamics-all-point-to-a-long-term-bottom\/","title":{"rendered":"Data metrics surrounding Bitcoin\u2019s miner dynamics all point to a long-term bottom"},"content":{"rendered":"<p>Ever since Bitcoin\u2019s capitulatory drop to lows of $3,800 seen in mid-March, investors and analysts alike have all been attentively watching for signs that these lows will ultimately mark a long-term bottom.<\/p>\n<p>The benchmark cryptocurrency\u2019s strong rebound from these lows has certainly been a positive sign that bolsters the theory that BTC won\u2019t dip below this level again, but analysts are still offering conflicting opinions on whether or not it currently has technical strength.<\/p>\n<p>It now appears, however, that data surrounding Bitcoin\u2019s miner dynamics does seem to suggest that there won\u2019t be any lower lows, and that further upside may be imminent as <a href=\"https:\/\/cryptoslate.com\/lots-of-selling-pressure-for-bitcoin-absorbed\/\">miner-based selling pressure<\/a> alleviates.<\/p>\n<h2>Bitcoin mining \u201chash ribbons\u201d tell a bullish tale<\/h2>\n<p>The dynamics seen amongst Bitcoin miners can offer investors with significant insights into the cryptocurrency\u2019s underlying market structure.<\/p>\n<p>One particular metric that can be used to determine the impact that miner-based selling pressure is having on the cryptocurrency is by looking at its hash-ribbons \u2013 or sometimes referred to as \u201c<a href=\"https:\/\/charts.woobull.com\/bitcoin-difficulty-ribbon\/\">difficulty ribbons<\/a>.\u201d<\/p>\n<p>This indicator is comprised of moving averages of Bitcoin\u2019s network difficulty, being bullish when the ribbons compress and bearish when they widen.<\/p>\n<p><a href=\"https:\/\/cryptoslate.com\/people\/willy-woo\/\">Willy Woo<\/a> \u2013 a prominent analyst who focuses on on-chain data \u2013 spoke about Bitcoin\u2019s hash ribbons in a recent tweet, explaining that they are currently flashing a reliable bottom sign, suggesting that the recent selloff led to significant capitulation amongst miners. He <a href=\"https:\/\/twitter.com\/woonomic\/status\/1246706047525388288\">said<\/a>:<\/p>\n<blockquote><p>\u201cA tale of 2 miner charts. Bullish. Hash Ribbons recovering (assumes no lower low), a reliable bottom signal, probably some miner capitulation during the crash. They last got culled in Dec 2018, only the strong remain, I don't expect miners to add more sell pressure from here.\u201d<\/p><\/blockquote>\n<figure id=\"attachment_129864\" aria-describedby=\"caption-attachment-129864\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-129864 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/WooHashRibbons-1024x703.jpg\" alt=\"Bitcoin\" width=\"1024\" height=\"703\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/WooHashRibbons-1024x703.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/WooHashRibbons-300x206.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/WooHashRibbons-768x527.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/WooHashRibbons-1536x1055.jpg 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/WooHashRibbons.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-129864\" class=\"wp-caption-text\">Image Courtesy of Willy Woo<\/figcaption><\/figure>\n<h2>BTC miner energy ratio also flashing buy signs<\/h2>\n<p>Compressing hash ribbons aren\u2019t the only things currently <a href=\"https:\/\/cryptoslate.com\/bitcoins-on-balance-volume-suggests-btc-is-about-to-see-a-highly-bullish-weekly-close\/\">counting in Bitcoin\u2019s favor<\/a>, as Woo <a href=\"https:\/\/twitter.com\/woonomic\/status\/1246706049819611136\">also notes<\/a> that miner\u2019s energy ratio is in the buy zone.<\/p>\n<figure id=\"attachment_123982\" aria-describedby=\"caption-attachment-123982\" style=\"width: 480px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/cryptoslate.com\/bitcoins-on-balance-volume-suggests-btc-is-about-to-see-a-highly-bullish-weekly-close\/\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-123982\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/02\/bitcoin-moon-1024x538.jpg\" alt=\"Bitcoin\u2019s on-balance volume suggests BTC is about to see a highly bullish weekly close\" width=\"480\" height=\"252\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/02\/bitcoin-moon-1024x538.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/02\/bitcoin-moon-300x158.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/02\/bitcoin-moon-768x403.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/02\/bitcoin-moon.jpg 1200w\" sizes=\"(max-width: 480px) 100vw, 480px\" \/><\/a><figcaption id=\"caption-attachment-123982\" class=\"wp-caption-text\">Related: <a href=\"https:\/\/cryptoslate.com\/bitcoins-on-balance-volume-suggests-btc-is-about-to-see-a-highly-bullish-weekly-close\/\">Bitcoin\u2019s on-balance volume suggests BTC is about to see a highly bullish weekly close<\/a><\/figcaption><\/figure>\n<p>This ratio is determined by comparing the crypto\u2019s market cap to its energy consumption, which shows that the profit margin for mining BTC is at historic lows \u2013 a phenomenon that often is a reliable bottom sign.<\/p>\n<blockquote><p>\u201cMiners Energy Ratio, the ratio between Bitcoin's marketcap to its energy consumption is in the buy zone. (Energy data from CBECI). Profit margin for minting new coins are at historic lows, a good sign for bottoms.\u201d<\/p><\/blockquote>\n<figure id=\"attachment_129865\" aria-describedby=\"caption-attachment-129865\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-129865 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/WooEnergyRatio-1024x729.jpg\" alt=\"Bitcoin\" width=\"1024\" height=\"729\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/WooEnergyRatio-1024x729.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/WooEnergyRatio-300x214.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/WooEnergyRatio-768x547.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/WooEnergyRatio-1536x1094.jpg 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/WooEnergyRatio.jpg 1834w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-129865\" class=\"wp-caption-text\">Image Courtesy of Willy Woo<\/figcaption><\/figure>\n<p>This also comes just over one month before Bitcoin\u2019s halving event, which may lead to another <a href=\"https:\/\/cryptoslate.com\/there-is-a-bearish-case-for-bitcoin-despite-the-recent-rally\/\">bout of capitulation<\/a> amongst miners, flushing out the weaker ones while also reducing the crypto\u2019s inflation rate by over 50%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ever since Bitcoin\u2019s capitulatory drop to lows of $3,800 seen in mid-March, investors and analysts alike have all been attentively watching for signs that these lows will ultimately mark a long-term bottom. The benchmark cryptocurrency\u2019s strong rebound from these lows has certainly been a positive sign that bolsters the theory that BTC won\u2019t dip below [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":129955,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,61715,2376],"tags":[60786],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Data metrics surrounding Bitcoin\u2019s miner dynamics all point to a long-term bottom<\/title>\n<meta name=\"description\" content=\"Data surrounding Bitcoin\u2019s miner dynamics seems to suggest that there won\u2019t be any lower lows and that the crypto could soon find itself in another uptrend\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/data-metrics-surrounding-bitcoins-miner-dynamics-all-point-to-a-long-term-bottom\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Data metrics surrounding Bitcoin\u2019s miner dynamics all point to a long-term bottom\" \/>\n<meta property=\"og:description\" content=\"Data surrounding Bitcoin\u2019s miner dynamics seems to suggest that there won\u2019t be any lower lows and that the crypto could soon find itself in another uptrend\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/data-metrics-surrounding-bitcoins-miner-dynamics-all-point-to-a-long-term-bottom\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-06T15:45:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-25T08:27:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/04\/bitcoin-balloons.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cole Petersen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cole Petersen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/data-metrics-surrounding-bitcoins-miner-dynamics-all-point-to-a-long-term-bottom\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/data-metrics-surrounding-bitcoins-miner-dynamics-all-point-to-a-long-term-bottom\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#person\",\"name\":\"Cole Petersen\",\"url\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"caption\":\"Cole Petersen\"},\"jobTitle\":\"Journalist\",\"description\":\"Cole is a freelance journalist and university student studying philosophy. 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