Bitcoin’s drop below $59,000 highlights heavy selling, with QCP analysts seeing miner capitulation as a potential sign of a market bottom.

Bitcoin (BTC) is facing yet another day of intense selling pressure, dropping below the crucial $60,000 support level and hitting lows of $57,875 which marks a significant downturn as BTC struggles to maintain its footing amid market turbulence. In their recent research note, QCP analysts highlight that Bitcoin miners appear to be showing “signs of capitulation,” adding that this historical indicator is often associated with a price bottom.

“Historically this has been associated with a bottom in prices with the last comparable hash rate drawdown occurring in 2022 when BTC traded to $17,000.”

QCP

Despite the broader sell-off in the crypto market, the analysts note that the options market remains optimistic, adding that the interest is “heavily skewed” towards Ethereum call options for September and December expiries, indicating a bullish sentiment for ETH even as BTC falters.

QCP analysts also identified several factors that could potentially reverse the current downtrend. Both Bitcoin and Ethereum have substantial liquidation clusters on the top side, which could trigger short squeezes and drive prices higher. Another potential catalyst is the impending approval of S-1 forms that “may result in a hard bounce in ETH.”

As crypto.news reported earlier, the total amount of cryptocurrency liquidations has more than doubled over the past day, with the global market capitalization plunging to its two-month lows. Data from Coinglass shows that total crypto liquidations surged by 114% in the past 24 hours, reaching the $265 million mark.

In a May exclusive interview with crypto.news, CryptoQuant head of research Julio Moreno noted that the market is “likely to see a miner capitulation if prices don’t recover significantly during the summer,” adding that the hashprice (average miner revenue per hash) is repeatedly “making new lows” following the latest halving.