Bitcoin mining has become more challenging due to increased competition, with the next difficulty adjustment expected to further increase competition. Miners are under pressure to allocate more resources or shut down operations. The behavior of miners may signal the direction of BTC's price. Mining profit/loss sustainability has shifted to 'underpaid', causing miners to strategically sell at local market tops. While miners have not abandoned the network in the past, mining capitulation could put more pressure on BTC's price. The upcoming difficulty adjustment may lead to slower mining and more favorable conditions, but some mining operations may try to inflate the hashrate to make less competitive facilities capitulate. Bitcoin's average mining costs are $86,000, while BTC is traded above $97,000. Small-scale miners are selling faster, while whale miners can retain more coins. A miner capitulation event can signal the end of a market drawdown. BTC has previously experienced a small capitulation event followed by a buy signal. Despite challenging mining conditions, BTC is not currently flashing a Hash Ribbon indicator, which signals an active phase of miner capitulation. The appearance of a hash ribbon coincides with more dramatic market drawdowns, but also indicates the end of the drawdown and the start of a new bullish cycle.



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