Bitcoin Price and Hash Rate Relationship:
The Bitcoin hash ribbons indicator’s core concept is that there is a direct relationship between the hash rate and price. The thought is that the miners will reduce their bitcoin mining efforts when an opportunity to get better results elsewhere occurs, this can happen for two reasons:
(1) Bitcoin price has decreased
(2) Mining costs (electricity) has increased
Looking at all years period for Bitcoin, there seems to be a correlation between when hash-rates are bottoming alongside price to indicate a local or close to local bottom for the bitcoin price.
Miner Capitulation:
The capitulation of miners can be considered a better bottom indicator than retail traders calling it quits. They tend to be one of the last to throw in the towel, which has to do with that they have mining profits to help offset the costs and loss related to a bitcoin price dump.