Bitcoin
Bitcoin’s Bullish Indicator That Led to a Reversal Has Returned. Is $70,000 Possible?
Jamie CouttsReal Vision’s top 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 may already be on the horizon for the flagship cryptocurrency.
Bitcoin Hash Rate Decline Is Slowing Down
Coutts mentioned in an X (old Twitter) publish what Bitcoin Hash Rate the decline is slowing, which he noted usually precedes a bottom and bearish reversal from the bearish trendline, which happened after the halving event. He did, however, warn that a bullish reversal still depends on a “stabilization in the downward trend”.
The crypto analyst further noted that the percentage difference between the 30-day and 90-day moving averages aligns with previous hash rate contractions and is not as severe as the post-2020 halving. A slowdown in Bitcoin’s hash rate decline is significant because it suggests that capitulation of the miners may end soon.
Cryptocurrency Expert Willy Woo mentioned before 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 are forced to buy more efficient hardware.
Cryptoquant CEO Ki Young Ju provided insights into when this miners’ capitulation might end. He stated which usually ends when the average daily value mined is 40% of the annual average. The crypto founder further revealed that it is currently at 72%, suggesting that it may still be a while before miners finally cool off on unloading their reserves.
Ki Young Ju told market participants to expect cryptocurrency markets to be flat for the next two to three months. He encouraged them to remain bullish in the long term but avoid excessive risk-taking. Cryptocurrency analysts like Mikybull Crypto also assured that Bitcoin’s long-term outlook is bullish, as the leading cryptocurrency is still far from its bull market peak.
Market still recovering from oversupply
Coutts also mentioned that the market is still recovering from oversupply. This is related to the selling pressure that Bitcoin has experienced thanks to German governmentwhich has dumped nearly 50,000 BTC into the market. As such, it may take some time for the market to absorb this supply of Bitcoin.
Although this selling pressure has negatively impacted the market, Coutts stated that the distributions of German government sales It is Mt. Gox Reserves could help remove the “annoying oversupply.” The analyst noted that this would happen by distributing these coins to a wider range of holders, which in turn would grow the Bitcoin network and make the flagship cryptocurrency even better off than before.
At the time of writing, Bitcoin was trading around $58,300, up more than 2% in the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com