Jamie Coutts, the top crypto analyst at Real Vision, has highlighted an indicator that paints a bullish picture for Bitcoin (BTC). Based on this indicator, the crypto analyst suggested that a turnaround may already be on the horizon for the flagship crypto.
The decline in the Bitcoin hashrate is slowing down
Coutts mentioned in an X (formerly Twitter) after That Bitcoin’s hash rate The decline is slowing, which he says usually precedes a reversal of the bearish cross at the bottom that occurred after the halving. However, he warned that a bullish reversal still depends on a “stabilization in the downtrend.”
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The crypto analyst further noted that the percentage difference between the 30 and 90 day moving averages is in line with previous hash rate contractions and is not as severe as the halving after 2020. A slowdown in the hash rate decline of Bitcoin is significant as this points out capitulation of the miners may end soon.
Crypto expert Willy Woo mentioned before that the market will recover when “weak miners die and the hash rate recovers.” He further explained that inefficient miners will be forced out of business, while other miners will be forced to purchase more efficient hardware.
CEO of Cryptoquant Ki Young Ju has provided insights into when these miners’ capitulation might end. He declared that it usually ends when the daily average mined value reaches 40% of the annual average. The crypto founder further revealed that it is currently at 72%, suggesting it could still be a while before miners finally cool off on offloading their reserves.
Ki Young Ju told market participants to expect the crypto markets to be dull in the next two to three months. He urged them to remain optimistic in the long term but avoid excessive risks. Crypto analysts like Mikybull Crypto have also ensured that Bitcoin’s long-term prospects are bullish, as the flagship crypto is still far from its bull market peak.
Market is still recovering from supply surplus
Coutts also said the market is still recovering from the supply glut. This in connection with the sales pressure that Bitcoin has experienced thanks to the German government, putting almost 50,000 BTC on the market. As such, it may take a while for the market to soak up this Bitcoin supply.
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Although this selling pressure has had a negative impact on the market, Coutts says declared that the distributions of the Sale by the German government And Mount Gox Reserves can help remove the ‘annoying supply overhang’. The analyst noted that this would be done by distributing these coins to a wider range of holders, which would in turn grow the Bitcoin network and leave the flagship crypto even better off than before.
At the time of writing, Bitcoin is trading around $58,300, up more than 2% in the past 24 hours. facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com