Jamie Couttsthe chief cryptocurrency analyst at Real Vision, highlighted an indicator that paints a bullish picture for Bitcoin (BTC). Based on this indicator, cryptocurrency analyst suggested that a trend reversal may be on the horizon for the flagship cryptocurrency.
Bitcoin hashrate decline slows
Coutts listed in X (formerly Twitter) fasting This Bitcoin Hash Rate the decline is slowing, which he noted typically precedes a lower inverted bearish cross line that follows a halving event. He warned, however, that bullish reversal still depends on “stabilization of the downward trend.”
The cryptocurrency analyst further noted that the percentage difference between the 30- and 90-day moving averages is in line with previous hash rate declines and is not as severe as the post-2020 halving. The slowdown in the decline of Bitcoin’s hash rate is significant as it suggests that miners’ surrender may end soon.
Cryptocurrency Expert Willy Woo previously mentioned that the market will recover when “weak miners die and the hash rate recovers.” He further explained that ineffective miners will have to declare bankruptcy, while other miners will be forced to purchase more productive hardware.
Cryptoquant CEO Ki Juvenile Ju provided information on when this miners’ capitulation might end. He he stated that it usually ends when the average daily mining value is 40% of the annual average. The cryptocurrency founder further revealed that it currently stands at 72%, suggesting that it may still be some time before miners finally nippy down on getting rid of their reserves.
Ki Juvenile Ju told market participants to expect cryptocurrency markets to be tedious for the next two to three months. He urged them to remain bullish long-term but avoid excessive risk. Cryptocurrency analysts like Mikybull Crypto They also assured that Bitcoin’s long-term prospects are bullish, as the flagship cryptocurrency is still far from its bull run peak.
The market continues to recover from the oversupply
Coutts also mentioned that the market is still recovering from the oversupply. This is due to sales pressure that Bitcoin has experienced thanks to German governmentwhich sold almost 50,000 BTC on the market. Therefore, it may take some time for the market to absorb this supply of Bitcoins.
Although this selling pressure has had a negative impact on the market, Coutts he stated that the distributions Sale of German government AND Mt. Gox Reserves could lend a hand remove the “annoying supply glut.” The analyst noted that this would happen by distributing these coins to a wider group of holders, which in turn would grow the Bitcoin network and leave the flagship cryptocurrency in an even better position than before.
At the time of writing, Bitcoin is trading at around $58,300, up more than 2% in the past 24 hours, according to data data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
