Jamie Coutts, the chief crypto analyst at Real Vision, has brought attention to a key indicator that suggests a bullish future for Bitcoin (BTC). Coutts highlighted that the decline in Bitcoin’s hash rate is slowing down, a trend that typically signals a bottom and a reversal of bearish sentiment. However, he cautioned that a successful bullish reversal would require a stabilization in the current downtrend.
Insights from Crypto Experts
Willy Woo, a prominent crypto expert, has previously mentioned that the cryptocurrency market tends to recover when weak miners exit the market, and the hash rate begins to recover. This process involves inefficient miners going bankrupt, making way for more efficient miners with better hardware. According to Cryptoquant’s CEO Ki Young Ju, miners’ capitulation typically ends when the daily average mined value reaches around 40% of the yearly average. Currently, this value stands at 72%, indicating that it may still take some time before miners stop offloading their reserves.
Ki Young Ju has advised market participants to brace for a period of dullness in the crypto markets over the next two to three months. Despite this caution, he encouraged a long-term bullish outlook while advising against taking excessive risks. Other analysts, such as Mikybull Crypto, have also expressed optimism about Bitcoin’s long-term prospects, emphasizing that the cryptocurrency is still a considerable distance away from its peak in the bull market.
Market Recovery and Supply Overhang
Coutts pointed out that the crypto market is currently recovering from a significant supply overhang caused by external factors such as the German government selling nearly 50,000 BTC. This influx of Bitcoin supply has created selling pressure on the market, which could persist until the excess supply is absorbed by market participants.
Despite the challenges posed by the ongoing supply overhang, experts like Coutts believe that Bitcoin’s overall bullish trajectory remains intact. The gradual slowing down of the hash rate decline, coupled with the potential end of miners’ capitulation, may pave the way for a positive reversal in Bitcoin’s price action. While short-term market volatility may persist, the long-term outlook for Bitcoin appears promising based on expert analysis and historical trends.
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