Asset manager: This key indicator means the Bitcoin bottom is in

Over the past few days, Bitcoin has started to show signs of life, surging as high as $7,700 on the morning of Dec. 23.

While bears argue that it is too soon to tell that the bottom of the downtrend is in, a key signal that last appeared after Bitcoin hit $3,150 in December of last year has just made an appearance again, providing investors with a strong bull case moving into 2020.The bottom is in, key indicator says.

For those unaware, miner capitulation is when certain miners of the Bitcoin network or other blockchains, often retail and non-industrial operations, are losing money by continuing to contribute computational power to collect cryptocurrencies.

These miners are forced to sell their mined cryptocurrencies and/or shut off their operations, resulting in a large amount of bearish pressure in the Bitcoin market.

There is no exact way to determine when such capitulation takes place, though analysts say it coincides with stagnations or decreases in the Bitcoin network's hash rate.

Charles Edwards, a digital asset manager, remarked that the most recent capitulation began on Nov. 19, with hash rate stalling and Bitcoin falling by 25 percent in the weeks that followed.

According to his latest update, posted Dec. 23, miner capitulation has most likely ended, with Bitcoin's hash rate finally breaking higher after weeks of flatlining, resulting in a signal of "Recovery" being printed by his "Hash Ribbons" indicator.

Prominent trader "SmokeyXBT" recently posted the chart below on Twitter, remarking that if $6,400 "Was the generational Bitcoin bottom, it was the most perfect bottom to ever be formed."

The question then remains: can bulls push Bitcoin higher from the $7,000s to the $8,000s and beyond?

"Dave the Wave," a prominent chartist that called the recent drop to the $6,000s when Bitcoin was trading above $10,000, recently noted that he believes the one-week Moving Average Convergence Divergence - an indicator tracking trends of assets - is likely going to see a bullish crossover early next year.