Analyst: BTCMining difficulty hitting a new high may signal that the coin price has reached a local bottom

BlockBeats News, on February 10th, CoinDesk senior analyst James Van Straten stated that BTCMining difficulty set a new historical high of 114.7T after the weekend adjustment, with an increase of 5.61% compared to the previous Difficulty Retargeting. This change coincides with the timing of the Miner Capitulation signal issued by the Hash Ribbon indicator. Hash Ribbon is a market indicator that usually forms during Miner Capitulation, which implies a possible local bottom for BTC when mining costs exceed profits. According to data from Glassnode, Miner Capitulation began in early February. BTC has fallen over 4% so far this month. Historically, when this indicator issues a Capitulation signal, it usually marks a local bottom for the price. If this pattern holds true, the bottom for BTC could be around $91,000. The last Capitulation signal appeared in October 2024, followed by a 50% big pump in BTC. As mining difficulty increases, mining becomes more competitive and puts additional pressure on miners. The production data for January reflects this, with Riot Platforms being the only major listed mining company to report a rise in output compared to the previous month.