Key Points
- Bitcoin’s value falls below $59,000 with intense selling pressure, indicating possible miner capitulation.
- Despite Bitcoin’s downturn, the options market remains optimistic about Ethereum.
Bitcoin (BTC) is experiencing another day of intense selling pressure, falling below the crucial $60,000 support level.
BTC hit lows of $57,875, a significant downturn as it battles to maintain stability amid market turbulence.
Miner Capitulation and Market Optimism
According to a recent research note by QCP analysts, Bitcoin miners seem to be showing “signs of capitulation”.
This historical indicator is often linked with a price bottom, suggesting a potential market turnaround.
Despite the broader sell-off in the crypto market, the analysts note that the options market remains optimistic.
There is a heavy interest in Ethereum call options for September and December expirities, indicating a bullish sentiment for Ethereum even as Bitcoin struggles.
Potential Factors for a Reversal
QCP analysts have also identified several 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.
Another potential catalyst is the impending approval of S-1 forms that “may result in a hard bounce in Ethereum”.
The total amount of cryptocurrency liquidations has more than doubled over the past day, with the global market capitalization dropping to its two-month lows.
Data shows that total crypto liquidations surged by 114% in the past 24 hours, reaching the $265 million mark.
In a recent interview, CryptoQuant’s head of research, Julio Moreno, noted that the market is “likely to see a miner capitulation if prices don’t recover significantly during the summer”.
Adding that the hashprice (average miner revenue per hash) is repeatedly “making new lows” following the latest halving.
