Fun

Bitcoin price bouce will occur when ‘weak hands’ capitulate and hashrate recovers

News Feed - 2024-06-22 06:06:59

Nancy Lubale2 hours agoBitcoin price bouce will occur when ‘weak hands’ capitulate and hashrate recoversAnalysts say Bitcoin price will rally only after BTC miners capitulate and the network’s hashrate recovers.1315 Total views17 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin (BTC) has been in a downtrend for over two weeks and now trades 13.8% below its all-time high of $73,835, reached on March 14. Analysts argue that BTC must recover its hashrate and shake off “weak hands” to end the downtrend.


Independent analyst Willy Woo noted that Bitcoin’s price would only recover when “weak miners die” and the hashrate recovers.


“This one is for the record books as it"s taking a lot of time for miner capitulation post-halving,” Woo wrote in a June 21 post on the X social media platform.


Miner capitulation is a theory that posits that miners will turn off their hardware and sell their coins if Bitcoin falls below a certain price and mining becomes unprofitable.


When Bitcoin “sheds weak hands,” it means “inefficient miners running old hardware and high costs go into bankruptcy. While others are forced to upgrade hardware that’s more efficient” because their revenues have been halved, the analyst explained. “Both cases force miners to sell their BTC to pay for losses or hardware upgrades. ”“After that’s done and the selling has ended, and only the strong remain, and they hodl waiting for higher prices.”


Woo added that capitulation is taking longer during the current cycle, probably due to profit boosts. “Thanks to ordinal inscriptions.”


He shared the following graph showing that the hashrate recovery is taking longer compared to previous cycles.Bitcoin hashrate recovery. Source:Willy Woo


In comparison, the hashrate took 24 days to recover during the 2017 cycle and only 8 days in 2020.“And today. Still waiting for the miners to properly die. 61 days so far.”


Bitcoin hashrate refers to the number of attempts made per second to solve the mathematical puzzle that validates Bitcoin transactions.


When the Bitcoin hashrate rises, more computing power is used, which increases energy costs and lengthens verification and transaction times.


“Bitcoin’s average mining cost is currently at $86,668,” declared fellow analyst Ali Martinez in a June 15 post on X.“Historically, $BTC always surges above its average mining cost!”Average BTC mining costs. Source:Ali Martinez


Also weighing in on when the Bitcoin price is likely to end the downtrend is fellow analyst Mr. Anderson who said it will take a “shake out,” which takes place “when price drops sharply, causing less committed traders to sell.’


“The goal is to trigger panic and increased selling,” he explained in a June 18 X post.“After the weaker traders exit, the price often stabilizes or rebounds as stronger traders buy at lower prices.”


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Cryptocurrencies# Bitcoin Price# MarketsAdd reaction

News Feed

Helen Partz12 hours agoCathie Wood’s ARK sells Grayscale Bitcoin Trust shares as BTC hits $34KThe Grayscale Bitcoin Trust is the largest asset held by the ARK Next Generation Internet ETF, accounting for more than 10%
UAE Says No Virtual Asset Service Provider Has Been Granted an Operating Permit
UAE Says No Virtual Asset Service Provider Has Been Granted an Operating Permit The United Arab Emirates virtual assets regulator has said no crypto entity has been granted the ful
China has a Trojan Horse in US Bitcoin mining infrastructure
Sriram Viswanathan1 hour agoChina has a Trojan Horse in US Bitcoin mining infrastructureChina holds an alarming amount of power over Bitcoin miners in the United States. Congress should act to scale back the country"s in
XRP Jumps 4%, Whale Reacts With $69 Million Coinbase Deposit
Este artículo también está disponible en español. On-chain data shows an XRP whale has moved a large amount of the asset to Coinbase following a 4% Christmas rally in its
Investment Manager Guggenheim Has Some Advice as BTC Sheds Billions — ‘Bitcoin’s Parabolic Rise Unsustainable’
Investment Manager Guggenheim Has Some Advice as BTC Sheds Billions — "Bitcoin"s Parabolic Rise Unsustainable" Guggenheim Investments’ global chief inve
Bitcoin Spot ETFs Score $1.81 Billion In Net Inflows As Market Revival Continues
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
From Presale Pick to Market Star: PEPU’s 500% Gain and WEPE’s Promise
Holders of $PEPU – the new Pepe Unchained meme coin listing – will be smiling today. In just two days since its December, 10 launch, $PEPU’s market capitalization has sky rocketed to above the $480M mark. That’s
Amaka Nwaokocha14 minutes agoArkham IDs Robinhood as 5th-largest ETH holderArkham Intelligence said the wallet contains approximately $2.54 billion worth of ETH under custody for user balances.68 Total viewsListen to art
Ana Paula Pereira5 hours agoMonero’s community wallet loses all funds after attackA security breach has resulted in the loss of 2,675.73 XMR from Monero"s community crowdfunding wallet. The cause and source of the brea
Reports of ‘bleached’ counterfeit bills crop up across North America
Martin Young3 hours agoReports of ‘bleached’ counterfeit bills crop up across North AmericaDodgy dollars are appearing everywhere, from Texas to Hawaii to Canada, as fiat counterfeiting is seemingly making a comeback
Marcel Pechman5 hours ago3 key Ether price metrics suggest that ETH is gearing up for volatilityNetwork, futures and user data all point toward Ether potentially charting a new course.1488 Total views71 Total sharesListe
Nvidia overtakes Tesla as most-traded stock, while AI boosts revenue 265%
Arijit Sarkar3 hours agoNvidia overtakes Tesla as most-traded stock, while AI boosts revenue 265%Nvidia also overtook Elon Musk’s Tesla as Wall Street’s most-traded stock in the United States over the last 30 trading