Crypto analyst Willy Woo recently explained what needs to happen for Bitcoin to continue operating his bull run. The flagship cryptocurrency has been in decline for some time and has not achieved significant growth since reaching its current levels highest level ever (ATH) at $73,750 in March this year.
What needs to happen for Bitcoin to recover
Willy Woo mentioned in X (formerly Twitter) post that Bitcoin will recover when “weak miners die and mixing speed “I’m recovering.” He further explained what getting rid of weak hands means for BTC, stating that “inefficient miners using old equipment and incurring high costs end up going bankrupt. While others are forced to upgrade to equipment that is more efficient.”
This usually happens because miners’ incomes have halved in the aftermath Bitcoin halving. Meanwhile, they still incur the same costs even after halving. Willy Woo mentioned that they force miners to sell BTC to cover losses incurred or to upgrade their equipment. He believes in these capitulation of miners is what has caused the continued downward trend in the BTC price.
As such, Bitcoin is expected to make an impressive price surge as miners finish liquidating their Bitcoin holdings. A cryptocurrency analyst said that this time the capitulation of miners is record-breaking, considering that a long time has passed since the halving. He noted that this was probably due to, among others, ordinal inscriptionswhich increased the profits of these miners.
Meanwhile, Willy Woo also highlighted that Bitcoin’s hash rate has taken much longer to recover in this cycle compared to previous cycles. He stated that in the 2017 and 2020 market cycles, BTC hash took only 24 and 8 days to recover. However, this time it has been over 61 days and Bitcoin’s hash rate has not improved yet.
BTC will recover in due time
Rekt Capital cryptocurrency analyst continues to confirm that Bitcoin’s recovery will happen soon. He recently taken over that Bitcoin consolidating in this range is not unusual, noting that the market has witnessed such post-halving ranges in the past. The analyst also explained that BTC is still in a re-accumulation phase Bitcoin halving For now.
Once this phase is completed, BTC will enter the “parabolic uptrend” phase, which will initiate BTC’s rise to the market peak of this cycle. Rekt Capital recently suggested that the phase of a parabolic uptrend may begin sometime in September. Meanwhile, he said that based on previous market cycles, Top on the BTC market it may come in September or October next year.
Rekt Capital has it too deliberate Bitcoin investors from being thrown out of their positions. He stated that Bitcoin could pull back deep enough to convince anyone that the bull run is over and then resume its uptrend.
Featured image created with Dall.E, chart from Tradingview.com
