Bitcoin (BTC) continues to face strong selling pressure, breaching the critical $60,000 support level and dropping to lows of $57,875. This downturn highlights BTC’s struggle amidst ongoing market volatility. QCP analysts recently noted that Bitcoin miners are displaying signs of capitulation, a historical indicator often associated with price bottoms.
According to QCP’s research note, similar hash rate declines in the past, such as in 2022 when BTC plummeted to $17,000, have historically signaled potential price bottoms.
Despite the broader crypto market sell-off, QCP analysts point out that the options market remains optimistic. They highlight a pronounced interest in Ethereum call options for September and December expiries, suggesting a bullish sentiment towards ETH even as BTC faces challenges.
QCP analysts have highlighted several potential factors that could reverse the ongoing downtrend in both Bitcoin and Ethereum markets. Notably, significant liquidation clusters exist on the upside for both cryptocurrencies, which might trigger short squeezes and propel prices upwards. Additionally, the imminent approval of S-1 forms could act as a catalyst, potentially leading to a robust rebound in ETH prices.
Crypto.news recently reported a substantial increase in cryptocurrency liquidations, with global market capitalization hitting its lowest point in two months. According to Coinglass data, total crypto liquidations surged by 114% over the past 24 hours, amounting to $265 million.
In an exclusive May interview with crypto.news, Julio Moreno, CryptoQuant’s head of research, expressed concerns about potential miner capitulation if prices fail to recover significantly during the summer. Moreno noted that the hashprice, reflecting average miner revenue per hash, continues to decline following the latest halving event.