Bitrabo Editorial
Describing what Bitcoin must go through to resume its upward trend, crypto analyst Willy Woo shares insights. Despite reaching an all-time high of $73,750 in March, Bitcoin has been in a downturn, struggling to make significant gains.
Criteria for Bitcoin Recovery
In a recent post on X (formerly Twitter), Willy Woo indicates that Bitcoin’s recovery hinges on the demise of weak miners and the subsequent rebound in hash rate. He explains that shedding weak hands involves inefficient miners with outdated hardware and high operational costs going bankrupt, while others are compelled to upgrade to more efficient equipment.
The reduction in miners’ income post-Bitcoin halving has left them with unaltered costs, leading to a dilemma. Willy Woo explains that this scenario prompts miners to sell their BTC to cover losses or fund hardware upgrades. The resulting miners’ capitulation has driven Bitcoin’s price downward.
Bitcoin is anticipated to undergo a substantial price recovery after these miners complete liquidating their Bitcoin holdings. Willy Woo notes that this particular miners’ capitulation is unprecedented, taking an extended period post-halving. He attributes this delay to heightened profits fueled by external events benefiting the miners.
Willy Woo also remarks on the prolonged hash rate recovery for Bitcoin in this cycle compared to prior ones. While the hash rate bounced back within 24 and 8 days in the 2017 and 2020 market cycles, it has taken over 61 days this time, with no sign of recovery.
Predictions of Bitcoin’s Recovery
Crypto analyst Rekt Capital reassures that Bitcoin’s recovery is imminent. He emphasizes that the current consolidation phase is typical post-halving, marking the re-accumulation stage. Once this phase concludes, Bitcoin will transition into a parabolic uptrend, propelling it towards the cycle’s market peak.
Rekt Capital speculates that the parabolic uptrend may initiate around September based on past trends. He predicts Bitcoin’s market peak in September or October the following year, cautioning investors against premature sales. Despite potential retracements fostering doubts, the bull run is expected to resume, leading to an uptrend.