Cryptocurrency analyst Willy Wu I recently explained what needs to happen for Bitcoin to survive Bull race. The major cryptocurrency has been on the decline for a while now and has failed to make a significant rally since reaching its current position All time high (ATH) valued at $73,750 in March earlier this year.
What needs to happen for Bitcoin to recover?
Willie Wu was mentioned in X (formerly Twitter) mail That Bitcoin will recover when “Vulnerable miners die and Hash rate It recovers.” He also explained what it means for BTC to be released to weak hands, noting that “inefficient miners running outdated hardware and high costs go bankrupt. While others are forced to upgrade to more efficient devices.
This usually happens because miners' income halved after the crisis Bitcoin halving. Meanwhile, they still incur the same costs even after the halving event. These force miners to sell their Bitcoin to pay for losses incurred or hardware upgrades, Willie Wu mentioned. He believes this Miners surrender This is what caused the ongoing downward trend in the price of BTC.
As such, Bitcoin is expected to make an impressive price recovery once miners finish liquidating their Bitcoin holdings. The cryptocurrency analyst stated that miners capitulating this time is a record, considering that it has taken so much time since the halving occurred. He noted that this might have been because… Ordinal inscriptionswhich boosted the profits of these miners.
Meanwhile, Willy Wu also highlighted how it took much longer for Bitcoin hash rate to recover in this cycle than in previous cycles. He stated that Bitcoin hashrate took only 24 and 8 days to recover in the 2017 and 2020 market cycles. However, this time, more than 61 days have passed, and the Bitcoin hash rate has not yet recovered.
BTC will recover in time
Cryptocurrency analyst Rekt Capital She continued to stress that Bitcoin recovery will happen soon. It is recently claimed That Bitcoin consolidated within this range is not out of the ordinary, noting that the market has seen such ranges after halving in the past. The analyst also explained that BTC is still in the re-accumulation phase Bitcoin halving for now.
Once this phase is completed, Bitcoin will move into the “parabolic uptrend” phase which will begin Bitcoin’s rise to the highest market levels for this cycle. React Capital Recently proposed That parabolic uptrend phase could begin sometime in September. At the same time, he stated that based on previous market cycles, Top market for BTC It could come sometime in September or October next year.
Rekt Capital also has Advise Bitcoin investors are against eliminating their positions. He stated that Bitcoin could pull back deep enough to convince anyone that the uptrend is over, after which it will resume its uptrend.
Featured image created with Dall.E, chart from Tradingview.com