According to the latest research on the chain, the Bitcoin mining sector is also showing warning signs, as an important part of the company’s health is now moving above critical levels. In this case, Bitcoin the tree has a chance to restore the previous background, but only if a certain method is successful.
Bitcoin Miner Financial Stress Approaches Capitulation Levels Seen In Previous Lines
Saturday, April 18, MorenoDV it turns off Quicktake post on the CryptoQuant platform, revealing a dynamic shift among Bitcoin miners. The relevant indicator here is the Miner Financial Health Index 7D-SMA metric, which monitors the financial health in the short term.
Collaborative Reading
This metric combines four important factors – including hashprice (money per unit of computing power), block profit, fee share, and total mining revenue. When these are measured together, it can be seen whether the miners are working well or under stress.
According to the crypto expert, the index still shows a growing value of 27.7%, which is very close to the historical level (20%). Usually, when this metric reaches a critical level of 20%, it indicates this mining conditions are becoming more difficult; that there is not enough support for wages, or that even rewards are decreasing.
Interestingly, MorenoDV pointed out that history confirms this. According to crypto research, stable readings above this that were seen in the market in 2019, 2020, and 2022-2023 correspond to the last stages of the correction phase – which represents the time when weak people are removed from the market.
Market Trends May Follow Miner Adoption, Not Extreme Stress
Despite the risks that are currently evident, the expert explained that things seem to be leaning more towards recovery. As mentioned earlier, the Financial Health Index is now above the historical high of 20% and continues to grow.
In most cases, when this recovery above 20% occurs, it acts as a clear signal that a “forced selling phase” is in order. swallowed. MorenoDV pointed out that this often happens because the edge players must have been out; the networks are stable – thus, the remaining ones are operating in the best economic conditions.
The crypto expert pointed out that this change is usually related to the exhaustion of the strong momentum in the price of Bitcoin. Therefore, if the Miner Financial Health Index changes, it may be necessary to monitor it to re-correct the index.
As of this writing, Bitcoin is valued at approximately $75,829, reflecting a price decline of approximately 2% over the past 24 hours.
Collaborative Reading
Image from iStock, chart from TradingView
