If true, that would mean any further drops would result in miners reinvesting with purchases of Bitcoin and holding onto mined coins instead of buying fresh mining equipment. It would essentially mean massive support.
What it means is if the price continues to drop it will be illogical to mine bitcoins with current equipment. The first to drop out will be the most inefficient, then the more efficient stuff.
However this will cause the difficulty to drop which will encourage mining again, etc.
What this means in practicality is one could look to the opinions of the miners as another data point on price. If difficulty goes up, it indicates miners are bullish (or insane). If it drops, it is bearish (or likewise insane). If mining goes way off the line with respect to price, it means either something really interesting is up, or miners have lost their fucking minds.
C
