It has been pointed out by Jamie Coutts, the chief crypto analyst at Real Vision, that there is an indicator currently suggesting a bullish trend for Bitcoin (BTC). Coutts has highlighted that the slowing decline in Bitcoin’s hash rate could be an early indication of a bottom and subsequent reversal in the bearish trend. This particular indicator has often preceded a turnaround following the halving event.
One key aspect that Coutts draws attention to is the percentage difference between the 30- and 90-day moving averages in relation to Bitcoin’s hash rate contractions. This decline, while not as severe as post-2020 halving, is noteworthy as it hints at the possible end of miners’ capitulation. Crypto expert Willy Woo has previously spoken about the recovery of the market being tied to the death of weak miners and subsequent hash rate recovery.
According to insights provided by Cryptoquant’s CEO Ki Young Ju, the end of miners’ capitulation is often signaled when the daily average mined value reaches 40% of the yearly average. Ju has pointed out that currently, this value stands at 72%, indicating a potential prolonged period before miners reduce the selling pressure on reserves. This extended capitulation phase may lead to a stagnant market for the coming months.
Despite the challenges posed by the German government’s substantial Bitcoin sales, several crypto analysts remain optimistic about Bitcoin’s long-term prospects. Coutts, along with analysts like Mikybull Crypto, believes that Bitcoin is still a long way from reaching its peak in the current bull market. The market is still absorbing the excess supply introduced by the German government’s sales, which could further prolong the recovery process.
The analysis of the bullish indicator presented by Coutts sheds light on the potential reversal in Bitcoin’s bearish trend. While the market may face challenges in the short term due to the ongoing miners’ capitulation and supply overhang, the long-term outlook remains positive. It will be crucial for market participants to exercise caution, stay informed, and maintain a long-term bullish stance amidst the current market conditions.
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