Jimmy CoatesReal Vision’s chief crypto analyst has highlighted an indicator that paints a bullish picture for Bitcoin (BTC). Based on this indicator, Cryptographer He noted that a reversal may already be on the horizon for the leading cryptocurrency.
Bitcoin hash rate slows down
Coates is mentioned in the X (formerly Twitter) mail who Bitcoin Hash Rate The decline has slowed, which is what he usually indicates before the reversal of the downtrend to the bottom, which occurred after the halving event. However, he warned that bullish reversal Still relying on “downward stability”.
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The crypto analyst also noted that the relative difference between the 30- and 90-day moving averages is in line with previous hashrate contractions and is not as sharp as the post-2020 halving. The slowdown in Bitcoin’s hashrate decline is important because it suggests that Miners surrender It may end soon.
Cryptocurrency expert Willy Woo previously mentioned He added that the market will recover when “weak miners die, and the hash rate recovers.” He also explained that inefficient miners will be forced to go bankrupt while other miners will be forced to buy more efficient hardware.
Cryptoquant CEO, Ki Young Joo He offered insights into when the miners’ surrender might end. advertiser It usually ends when the average daily mined value reaches 40% of the annual average. The cryptocurrency’s founder also revealed that it is currently at 72%, suggesting that it may be some time before miners finally calm down about disposing of their reserves.
Ki Young-joo told market participants to expect crypto markets to be dull over the next two to three months. He urged them to remain bullish in the long term but avoid excessive risk-taking. Cryptocurrency Analysts Like Mikybull Crypto They also stressed that the long-term outlook for Bitcoin is bullish as the leading cryptocurrency is still far from its bull market peak.
Market still recovering from oversupply
Coates also said the market is still recovering from oversupply. This is in relation to selling pressure Bitcoin has witnessed thanks to German governmentwhich resulted in the dumping of approximately 50,000 Bitcoins into the market. Therefore, it may take some time for the market to absorb this supply of Bitcoins.
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While this selling pressure has had a negative impact on the market, Coates advertiser That distributions german government sales And Gox Mountain Reserves This could help remove the “annoying oversupply.” The analyst noted that this would happen by distributing these coins to a wider group of holders, which in turn would lead to the growth of the Bitcoin network and leave the leading cryptocurrency in a better position than before.
At the time of writing, Bitcoin is trading at around $58,300, up over 2% in the last 24 hours, according to Data From CoinMarketCap.
Featured image created using Dall.E, chart from Tradingview.com
