Question n° 407 ·
How do miner capitulation events, reflected in on-chain data, hint at possible Bitcoin price reversals?
- They signal miner cost sell-offs reducing network selling pressure often preceding price bottoms and bullish reversals Bonne réponse
- They track wallet movements predicting hacks used mainly to time short selling instead of price reversals
- They indicate sudden spikes in miner hashing power forecasting continuous upward price momentum ignoring bearish signals
- They measure daily transaction counts indicating blockchain congestion levels unrelated to miner profitability or price changes
Pourquoi est-ce la bonne réponse?
This is correct because miner capitulation refers to when mining becomes unprofitable and miners sell coins to cover costs. On-chain metrics like SOPR drop as they sell at a loss. Once these forced sales subside it often marks a bottom, with fewer sellers left in the market. Beginners learn that these capitulation events can signal the end of downtrends and the start of new upward price movements.