Jamie Coutts, the chief crypto analyst at Real Vision, has pointed out an indicator that suggests a bullish outlook for Bitcoin. He highlighted that the decline in Bitcoin’s hash rate is slowing down, which typically signals a potential reversal in the current bearish trend. However, Coutts emphasized that a bullish reversal is contingent on the stabilization of the downtrend.
According to Coutts, the slowdown in Bitcoin’s hash rate decline is significant because it indicates that miners’ capitulation may be coming to an end soon. This aligns with the views of crypto expert Willy Woo, who believes that the market will recover when weak miners exit the market and the hash rate starts to rebound. Woo explained that inefficient miners will be forced out of the market, while others will invest in more efficient hardware.
Cryptoquant’s CEO, Ki Young Ju, provided further insights into when miners’ capitulation might come to a halt. He suggested that it typically ends when the daily average mined value reaches 40% of the yearly average. Currently, it stands at 72%, indicating that it may still take some time before miners stop selling off their reserves. Ju advised market participants to brace for a dull market for the next two to three months, urging them to maintain a long-term bullish outlook while avoiding excessive risk.
Despite the selling pressure from the German government offloading a significant amount of Bitcoin on the market, analysts like Mikybull Crypto remain optimistic about Bitcoin’s long-term prospects. Coutts mentioned that the market is still recovering from this supply overhang, and it may take time for the market to absorb this excess supply. However, he reassured investors that Bitcoin is still far from reaching its bull market peak.
The slowing decline in Bitcoin’s hash rate and the potential end of miners’ capitulation signal positive developments for the cryptocurrency market. While there may be challenges ahead, such as absorbing the excess Bitcoin supply, experts remain bullish on Bitcoin’s long-term outlook. Investors should exercise caution and maintain a long-term perspective in navigating the current market conditions.