Crypto analyst Willy Woo recently discussed the key factors that need to occur for Bitcoin to continue its bull run. Despite reaching an all-time high of $73,750 in March, Bitcoin has been in decline and struggling to make significant gains. Willy Woo emphasized the importance of weak miners exiting the market and the recovery of the hash rate for Bitcoin’s resurgence. He explained that inefficient miners with outdated hardware and high operating costs are being forced out of the market, while others are upgrading to more efficient hardware. This process, known as miner capitulation, has been a major contributing factor to Bitcoin’s price decline.
The reduction in miners’ income after the Bitcoin halving event has led to a situation where they are selling off their BTC to cover expenses or upgrade their equipment. Once this phase of miner capitulation is complete, Bitcoin is expected to see a strong price recovery. Willy Woo noted that this round of miner capitulation has been prolonged compared to previous cycles, possibly due to external factors like increased profits from ordinal inscriptions.
Additionally, Willy Woo highlighted the delayed recovery of Bitcoin’s hash rate in this cycle compared to previous ones. While Bitcoin’s hash rate took only 24 and 8 days to recover in the 2017 and 2020 market cycles, this time it has taken over 61 days and is yet to fully recover. The combination of miner capitulation and hash rate recovery is crucial for Bitcoin’s future price movements.
Another crypto analyst, Rekt Capital, also expressed confidence in Bitcoin’s recovery, stating that the current consolidation phase is normal post-halving behavior. Rekt Capital believes that Bitcoin is still in the re-accumulation phase of the halving, and once this phase is complete, it will enter a parabolic uptrend phase that will propel it towards its market top for this cycle. The analyst suggested that the parabolic uptrend phase could begin in September, with the market top potentially occurring in September or October next year based on historical cycles.
Rekt Capital advised Bitcoin investors to remain steadfast in their positions, as there may be retracements that could shake out weak hands before the uptrend resumes. The analyst cautioned against being swayed by temporary price fluctuations and emphasized the importance of staying focused on the long-term trajectory of Bitcoin’s price movement.
Overall, both Willy Woo and Rekt Capital are optimistic about Bitcoin’s future prospects, citing factors such as miner capitulation, hash rate recovery, and historical market cycles as indicators of a potential price recovery in the near future. Investors are advised to exercise patience and confidence in Bitcoin’s long-term growth potential.
