Bullish Bitcoin Indicator That Led to Reversal Returns, Could $70,000 be possible?
Jamie Coutts, the chief crypto analyst at Real Vision, has highlighted a unique indicator that presents a bullish outlook for Bitcoin (BTC). According to Coutts, this indicator suggests that a reversal may already be on the horizon for the flagship cryptocurrency.
One of the indicators pointed out by Coutts is the slowing decline of Bitcoin’s hash rate, which usually precedes a reversal of the bearish cross that occurred after the halving event. However, Coutts warns that a bullish reversal still depends on the downtrend stabilizing.
Coutts also notes that the percentage difference between the 30- and 90-day moving averages aligns with previous hash rate contractions and is not as severe as the post-2020 halving. This slowdown in the decline of Bitcoin’s hash rate is significant as it indicates that miners’ capitulation may be ending soon.
Crypto expert Willy Woo has previously mentioned that the market will recover when “weak miners die, and hash rate recovers.” He further explains that inefficient miners will go bankrupt while others will need to invest in more efficient hardware.
Insights provided by Cryptoquant’s CEO Ki Young Ju suggest that miners’ capitulation might end when the daily average mined value is 40% of the yearly average. Currently, it stands at 72%, indicating that it may take some time for miners to cool off on offloading their reserves.
While market participants are advised to expect a dull crypto market for the next couple of months, analysts like Mikybull Crypto assure that Bitcoin’s long-term outlook is bullish, considering it is still far from reaching its bull market peak.
Coutts also mentions that the market is still recovering from a supply overhang caused by the German government offloading nearly 50,000 BTC. It may take time for the market to absorb this supply. However, Coutts suggests that distributing the German government sales and Mt. Gox reserves to a wider array of holders can remove this supply overhang and strengthen the Bitcoin network.
At the time of writing, Bitcoin is trading at around $58,300, showing an increase of over 2% in the last 24 hours, according to data from CoinMarketCap.