As bitcoin prices have been weak this year, some analyses say the price is nearing a bottom.
According to CoinMarketCap, a global virtual asset market tracker, on the 27th, bitcoin jumped more than 7% on the 26th, at one point topping $69,000 (about 98.95 million won). After climbing to $97,000 last month, bitcoin fell to $60,000 early this month and then rebounded. Experts say the current price range could be near the bottom when considering bitcoin's mining cost and other factors.
According to JPMorgan, the expense for bitcoin miners to mine one bitcoin is about $77,000 (about 110.4 million won), which is higher than the current price. JPMorgan said, "Historically, the cost of production (mining expense) has served as a lower support for the price of bitcoin. The current price range may be a bottoming area."
A representative indicator for gauging bitcoin's bottom range is the "hash ribbons." Hash ribbons use mining data (hash rate) from the bitcoin network to assess bitcoin's price level. Hash rate is the sum of the total computing power devoted to mining bitcoin; when mining increases, processing speed rises, and when mining decreases, processing speed slows.
Hash rate is measured per second, and the industry observes miner capitulation and recovery phases using the 30-day and 60-day moving averages of the hash rate. When the 30-day moving average crosses below the 60-day moving average, it signals that more miners have stopped mining (miner capitulation). Conversely, when the 30-day moving average breaks above the 60-day moving average, miners are seen as becoming more active.
According to on-chain analytics firm Glassnode, the current hash ribbons indicator shows the 30-day moving average below the 60-day moving average. Crypto-focused outlet CoinDesk said the roughly three-month "miner capitulation" is nearing its end stage and analyzed that an upside breakout of the 30-day moving average is imminent.