Bullish Bitcoin Indicator Which Led To A Reversal Has Returned, Is $70,000 Possible?
July 13 2024 - 9:30PM
NEWSBTC
Jamie Coutts, the chief crypto analyst at Real Vision, has
highlighted an indicator that paints a bullish picture for Bitcoin
(BTC). Based on this indicator, the crypto analyst suggested that a
reversal might already be on the horizon for the flagship
crypto. Bitcoin Hashrate Decline Is Slowing Coutts mentioned
in an X (formerly Twitter) post that Bitcoin’s hash rate decline is
slowing, which he noted usually precedes a bottom ad reversal of
the bearish cross, which happened after the halving event. He,
however, warned that a bullish reversal still depends on a
“stabilization in the downtrend.” Related Reading: Analyst Predicts
2,750% Celestia (TIA) Price Explosion To $188, Here’s The Roadmap
The crypto analyst further noted that the percentage difference
between the 30- and 90-day moving averages aligns with previous
hash rate contractions and isn’t as severe as the post-2020
halving. A slowdown in Bitcoin’s hash rate decline is significant
because it suggests that miners’ capitulation may be ending
soon. Crypto expert Willy Woo previously mentioned that the
market will recover when “weak miners die, and hash rate recovers.”
He further explained that inefficient miners will have to go into
bankruptcy while other miners are forced to purchase more efficient
hardware. Cryptoquant’s CEO Ki Young Ju has provided insights into
when this miners’ capitulation might end. He stated that it usually
ends when the daily average mined value is 40% of the yearly
average. The crypto founder further revealed that it is currently
at 72%, suggesting that it could still take a while before miners
eventually cool off on offloading their reserves. Ki Young Ju
told market participants to expect the crypto markets to be dull
for the next two to three months. He urged them to stay long-term
bullish but avoid excessive risk. Crypto analysts like Mikybull
Crypto have also assured that Bitcoin’s long-term outlook is
bullish as the flagship crypto is still far from its bull market
peak. Market Still Recovering From Supply Overhang Coutts
also mentioned that the market is still recovering from the supply
overhang. This is in relation to the selling pressure that Bitcoin
experienced thanks to the German government, which offloaded nearly
50,000 BTC on the market. As such, it could take a while for the
market to suck up this Bitcoin supply. Related Reading:
Market Strategist Predicts 32% Stock Market Crash, How Will This
Affect Crypto? While this selling pressure has negatively impacted
the market, Coutts stated that the distributions of the German
government sales and Mt. Gox reserves can help remove the “annoying
supply overhang.” The analyst noted that this would happen through
distributing these coins to a wider array of holders, which would,
in turn, grow the Bitcoin network and leave the flagship crypto
even better off than before. At the time of writing, Bitcoin
is trading at around $58,300, up over 2% in the last 24 hours,
according to data from CoinMarketCap. Featured image created
with Dall.E, chart from Tradingview.com
Celestia (COIN:TIAUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Celestia (COIN:TIAUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024