Bitrabo Editorial
An analyst believes that as Miner Capitulation nears its end in the cryptocurrency market, a bright future awaits Bitcoin (BTC), the leading digital asset, with a staggering price target of $200,000, setting a potential record high for the cryptocurrency.
Bitcoin’s Price Surge to $200,000 Anticipated
Recently, a crypto analyst known as ‘Cryptonary’ shared a forecast on X (formerly Twitter) suggesting that Bitcoin could soar to $223,000 in the near future. This optimistic outlook is based on Bitcoin’s historical patterns and Miner Capitulation following each halving event.
By examining BTC’s Hash Ribbon chart, Cryptonary highlighted the correlation between Miner Capitulation, occurring at the bottoms of bear markets post-halving cycles and significant market events like the FTX collapse, COVID-19, and regulatory actions in China.
Historically, the analyst pointed out that the conclusion of Miner Capitulation periods after Bitcoin halving events typically led to substantial price increases in the following months and years, suggesting that Bitcoin tends to establish its price bottom when miners capitulate due to escalating mining expenses and reduced revenue.
Miner Capitulation refers to the shutting down of mining operations and divestment of Bitcoin reserves by miners due to unprofitability or a decline in BTC’s value. The Hash Ribbon metric, highlighted by Cryptonary, aligns with Bitcoin’s historical downturns during Miner Capitulation phases as observed in previous months.
The analyst outlined past bullish cycles where Bitcoin witnessed remarkable price surges after each Miner Capitulation phase and halving event. For instance, following the 2012 halving, Bitcoin’s price skyrocketed by approximately 5,110.6%. Similarly, in 2016 and 2020, BTC experienced significant price rallies of 3,346.5% and 591.75%, respectively.
Considering these historical trends and the imminent conclusion of the current Miner Capitulation, Cryptonary projected a potential peak of $223,000 for BTC, based on an exponential decay model from its current price of $64,700.
Forecasts of Bitcoin Reaching $110,000 by Market Expert
Another crypto expert, Michael van de Poppe, shared insights on a potential rally for Bitcoin towards $110,000. Despite ongoing miner capitulation, Poppe noted a drastic decline in hash rates indicating a cycle low, signaling a recovery phase may be approaching.
Historically, such lows in hash rates have often preceded price rebounds, with Bitcoin experiencing a 20% price increase following favorable news about Mt Gox’s repayment plans. Drawing from this positive market sentiment, Poppe predicts Bitcoin could hit $110,000 from its current price of $64,479.