Bitcoin (BTC) difficulties hit a highlight of 114.7 trillion (T) after a 5.6% upward adjustment this weekend, according to Coinwarz.

This coincides with hash tape metric signaling of a miner capitulation. Hash Ribbon, is a market indicator that suggests a local base for Bitcoin (BTC) and often forms when miners capitulate – when mining costs exceed profitability.

According to Glassnode -Data, miner capital began in early February. Bitcoin is down over 4% month to date. Historically, when this metric signals capitulation, it has marked local price bottoms.

If this pattern applies, Bitcoin’s bottom may be about $ 91,000. The last capitulation signal took place in October 2024, just before BTC increased 50%.

This increase in difficulties is due to Bitcoin’s rising hash frequency that hit a high peak on February 4th. Mining of mining is adjusted every 2,016 blocks that target an average block time of 10 minutes.

As the difficulties increase, mining becomes more competitive and puts further pressure on miners. January’s production data reflects this, as Riot Platforms (RIOT) is the only large public miner reporting a monthly production increase.