Commenting on the cryptocurrency market, analyst James Van Straten announced that the capitulation process for Bitcoin miners has ended. As of yesterday, the miners’ surrender was complete and lasted about three months, making it the second longest period on record, Van Straten said.
Van Straten noted that miner capitulation usually signals a bottoming out in prices. He said the end of this three-month period could indicate that the worst is over for Bitcoin prices.
However, the analyst said that the hashrate needs to be closely monitored in the wake of the attacks in the Middle East. Whether geopolitical risks in the region impact mine operations is important from the perspective of network security and production dynamics.
Van Straten wondered if there were “new news streams” that could push Bitcoin further down from its current price level. He said the “Black Monday”-like scenario, which is sometimes mentioned in the market, does not have a strong impact at the moment.
According to the analyst, Bitcoin generally tends to bottom within the first 10 days of the month. This pattern repeated in February, with Bitcoin bottoming out on February 6th.
Van Straten said the first 10 days of the month could be volatile, but given historical probabilities, March’s closing price is likely to be positive. He explained the real bottom of Bitcoin with these words:
“Bitcoin typically hits a bottom when it doesn’t fall despite bad news, just as it hits a high when it doesn’t rise despite good news.”
*This is not investment advice.
