⛏️ Bitcoin trading in the "production cost" range; a historical sign of the bear market bottom

⛏️ Bitcoin trading in the "production cost" range; a historical sign of the bear market bottom

Background
🔹 Bitcoin trading price reaching the "Cost of Production / Production Cost" level of miners
🔹 Examining historical behaviors of Bitcoin price when approaching or crossing the miners' production cost trendline

Focus
📌 Price trading at levels where mining each unit of Bitcoin is considered the profitability threshold for the average miner.
📌 Historical pattern: Price drop below or equal to the production cost in previous cycles has often been accompanied by weaker miner capitulation (Miner Capitulation) and the formation of the ultimate bear market bottom (Bear Market Bottom).
📌 Severe financial pressure on mining farms and reduced selling incentive by remaining miners due to selling being economically unviable at these prices

Consequences
⚡️ Reduction in new supply due to the shutdown of low-efficiency equipment and limited selling by miners
⚡️ Provision of a suitable ground for long-term buyers to enter and the formation of a price accumulation phase

Conclusion
🎯 Bitcoin price reaching the production cost range, from an on-chain and financial data perspective, is a strong signal of the market approaching fundamental support levels and the likelihood of forming a price bottom.

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