Markets
Bitcoin Bullish Indicator That Led To Reversal Is Back, Is $70,000 Possible?
Jamie CouttsReal Vision’s chief cryptocurrency analyst, has highlighted an indicator that paints a bullish picture for Bitcoin (BTC). Based on this indicator, the crypto analyst suggested that a reversal could already be on the horizon for the flagship cryptocurrency.
Bitcoin hash rate decline slows
Coutts mentioned in an X (formerly Twitter) job that Bitcoin Hash Rate The decline is slowing, which he noted typically precedes a bottom and a reversal of the bearish crossover, which occurred after the halving event. He cautioned, however, that a bullish reversal still depends on a “stabilization of the downward trend.”
The crypto analyst also noted that the percentage difference between the 30- and 90-day moving averages is consistent with previous hash rate contractions and is not as severe as the halving after 2020. A slowdown in Bitcoin’s hash rate decline is significant because it suggests that capitulation of the miners This could end soon.
Willy Woo, Cryptocurrency Expert previously mentioned that the market will recover when “weak miners die and the hash rate recovers.” He further explained that inefficient miners will have to go bankrupt while other miners will be forced to buy more efficient hardware.
Ki Young Ju, CEO of Cryptoquant provided indications of when this miners’ capitulation might end. declared that this usually ends when the average daily value mined is 40% of the annual average. The crypto founder further revealed that this figure is currently at 72%, suggesting that it could still be some time before miners stop dumping their stashes.
Ki Young Ju told market participants to expect the cryptocurrency markets to be sluggish over the next two to three months. He urged them to remain optimistic in the long term but avoid excessive risk. Crypto analysts like Mikybull Crypto also assured that Bitcoin’s long-term outlook is bullish, as the flagship cryptocurrency is still far from its bull market peak.
Market still recovering from oversupply
Coutts also mentioned that the market is still recovering from the supply glut. This is related to the sales pressure that Bitcoin has experienced thanks to the German Governmentwhich dumped nearly 50,000 BTC into the market. Therefore, it may take some time for the market to absorb this supply of Bitcoin.
Although this selling pressure has had a negative impact on the market, Coutts declared that the distributions of German government sales And Mount Gox Reserves This could help eliminate the “troublesome oversupply.” The analyst noted that this would happen by distributing these coins to a wider range of holders, which would, in turn, grow the Bitcoin network and leave the flagship cryptocurrency even better off than before.
At the time of writing, Bitcoin is trading at around $58,300, up more than 2% in the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart by Tradingview.com