The chief crypto analyst at Real Vision, Jamie Coutts, has pointed out an indicator that suggests a potentially bullish outlook for Bitcoin (BTC). According to Coutts, Bitcoin’s hash rate decline is slowing, which usually indicates a bottom and a reversal of the bearish trend. However, he also cautioned that a bullish reversal would depend on a stabilization in the downtrend.
Coutts further highlighted the significance of the recent slowdown in Bitcoin’s hash rate decline. This slowdown suggests that miners’ capitulation, a process where weaker miners are forced out of the market leading to a recovery in hash rate, may soon come to an end. Crypto expert Willy Woo has emphasized that the market tends to recover when inefficient miners exit the market, and hash rate begins to recover.
Insights from Market Experts
Cryptoquant’s CEO, Ki Young Ju, provided insights into when miners’ capitulation might end. He stated that historically, capitulation ends when the daily average mined value is 40% of the yearly average. Currently, it stands at 72%, indicating that miners may continue offloading their reserves for some time. Ju advised market participants to expect dull crypto markets for the next few months but to remain long-term bullish and avoid excessive risk.
Crypto analysts like Mikybull Crypto have reiterated that Bitcoin’s long-term outlook remains bullish despite the recent market fluctuations. Coutts also mentioned that the market is still recovering from a supply overhang caused by the German government offloading nearly 50,000 BTC on the market. This selling pressure has impacted the market, and it may take some time for the market to absorb this additional supply.
While indicators such as Bitcoin’s hash rate decline and miners’ capitulation suggest a potentially bullish outlook for the flagship cryptocurrency, market participants should be prepared for continued volatility. It is important to consider expert insights and historical trends in understanding the current market conditions. Bitcoin’s long-term trajectory remains positive, but short-term fluctuations driven by factors such as supply overhang may continue to influence its price in the near future.
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