Bitrabo Editorial
The price of Bitcoin remains steady above $58,000 and approaches the significant $60,000 mark, offering assurance to bullish investors after a tumultuous period. While there are signs of strength, sellers are still predominant. To establish an upward trend and bolster buying activity, bulls need to reverse the gains from July 4 and 5.
Opportune Moment for Bitcoin Investment?
Amidst this positive outlook, an analyst suggested that Bitcoin’s current position is ideal based on historical trends following Halving events. The analyst noted that Bitcoin typically achieves higher peaks, commencing a new upward trajectory about 80 days after a Halving occurrence.
Although Bitcoin reduced its miner rewards from 6.25 to 3.125 BTC on April 20, the expected price surge did not materialize immediately. Instead, prices continued a correction from the highs in March 2024, concluding May around $56,500. This downtrend persisted into June, with further declines in the first half of July as Bitcoin dropped to as low as $53,500.
Within 80 days of the Halving in late April, bulls typically accumulate in anticipation of a significant price rally. The post-Halving period also sees strategic opportunities for savvy Bitcoin investors as weaker miners exit the market, leading to price drops.
Are Miner Capitulations in Bitcoin Done?
Analysis indicates that weak miners usually cease operations within six to ten weeks following a Halving event, aligning with significant price increases. Recent data suggests that the 10-week span post-Halving marked a prolonged period of miner capitulation, possibly signaling the end of dumping activities and the start of a potential surge in Bitcoin value.
Recent data from Santiment reveals that bearish sentiment among Bitcoin traders is currently at its highest level in over a year on various social media platforms. Bold traders may consider taking a contrarian stance by purchasing during periods of extreme fear, uncertainty, and doubt (FUD).