Currently, bitcoin is witnessing a positive rally as the price of the leading cryptocurrency is trading above $7,200 at the time of writing. However, the bullish trend might not last very long as the ongoing miner capitulations are creating a strong divergence and hidden sell signal. Bitcoin miners are expected to dump their holdings before their operations become less profitable in the coming weeks.
Miner capitulations may cause a death drop
According to the crypto analyst Mansasuma, the ongoing miner capitulations may cause a ‘death drop‘ and crush some bullish dreams. He argued that a strong divergence is currently present, which mirrors the death drop of late 2018. He suggests that the market rebound might be an opportunity for bitcoin miners to unload and lock in profits before the halving event occurs, reducing their revenues by half. If Mansasuma is right, then the bitcoin price will see a massive crash in the coming weeks.
Right, time to crush some bullish dreams
So you know how we get miner capitulation talk after every single +20% dump in Bitcoin land?
Well, funnily enough I haven´t seen a single post mentioning this which is really strange BUT..
— Mansasuma (@mansasuma) April 6, 2020
Has bitcoin seen the bottom?
There is an ongoing debate about whether the bitcoin has seen the bottom or not. Several analysts had claimed that when bitcoin plunged to below $4,000 on March 12 was the bottom for bitcoin. But some crypto analysts are still sure that bitcoin is yet to see the bottom. There are a couple of perspectives to take when it comes to assessing Bitcoin for the short-term one is the upcoming halvening event and miners’ profitability, and the other is the ongoing global economic crisis.
Currently, it seems like bitcoin is still coupled with traditional markets, but as the markets continue to collapse due to the ongoing pandemic, bitcoin is also expected to fall in the coming weeks. However, as of now, the bitcoin is up 4.8% in the last 24 hours and is trading above $7,200.
