Bitcoin has seen a significant drop, falling below the $59,000 mark, which has prompted a wave of intense selling. Analysts at QCP are interpreting this as a possible indication of miner capitulation, suggesting that the market may have hit a low point.
The cryptocurrency, Bitcoin (BTC), has struggled to maintain its position amidst market instability, plummeting below the crucial $60,000 support level and reaching a low of $57,875. QCP analysts have observed that Bitcoin miners are displaying signs of capitulation, a historical indicator often associated with a price bottom.
Despite the overall sell-off in the crypto market, the options market shows a more positive outlook. The interest is heavily leaning towards Ethereum call options for September and December expiries, indicating a bullish sentiment for ETH despite Bitcoin’s struggles.
QCP analysts have also identified factors that could potentially reverse the current downtrend. Both Bitcoin and Ethereum have significant liquidation clusters on the top side, which could lead to short squeezes and drive prices higher. Additionally, the impending approval of S-1 forms may result in a substantial bounce in ETH.
According to crypto.news, the total amount of cryptocurrency liquidations has more than doubled in the past day, with the global market capitalization hitting a two-month low. Data from Coinglass indicates that total crypto liquidations surged by 114% in the last 24 hours, reaching $265 million.
In an exclusive interview with crypto.news in May, CryptoQuant’s head of research Julio Moreno stated that the market is likely to experience miner capitulation if prices do not significantly recover during the summer. He also noted that the hashprice is repeatedly hitting new lows following the latest halving.
According to Kaiko, Bitcoin’s halving is unlikely to affect the price in the next 18 months.