Miner Capitulation in the cryptocurrency market is showing signs of coming to an end, and a crypto analyst is maintaining a positive outlook on the price of Bitcoin (BTC), the largest cryptocurrency in the world. The analyst has set a bold target of $200,000 for BTC, which would mark a new all-time high for the pioneer cryptocurrency.
In a recent post on X (formerly Twitter) on July 17, a crypto analyst known as ‘Cryptonary’ predicted that Bitcoin’s price is on track to reach $223,000 in the near future. This optimistic forecast is based on BTC’s historical trends and Miner Capitulation following each halving cycle.
Cryptonary shared a price chart of BTC’s Hash Ribbon, highlighting Miner Capitulation at bear market lows after each Bitcoin halving and significant events like the FTX collapse, COVID-19, and crypto bans in China. The analyst pointed out that the conclusion of Miner Capitulation periods following cyclic Bitcoin halving events has historically led to substantial price surges in Bitcoin’s value in the months and years that follow. The Hash Ribbon metric indicates that BTC tends to hit its bottom when miners capitulate due to high mining costs and low revenue.
Miner Capitulation occurs when miners shut off their hardware and stop mining Bitcoin to start selling off their coin reserves. This typically happens when mining operations become unprofitable or when BTC’s price falls below a certain level.
The Hash Ribbon metric highlighted by Cryptonary aligns with Bitcoin’s previous declines to new lows during Miner Capitulation periods in May and June. During these times, various crypto analysts suggested that BTC may have hit its price bottom due to significant sell-offs by BTC miners.
Looking at past bull cycles, Cryptonary outlined explosive surges in Bitcoin’s price after each Miner Capitulation period and Bitcoin halving event. After the 2012 halving, BTC saw a price increase of 5,110.6%. In 2016, following another Bitcoin halving, the price surged by 3,346.5% after the Miner Capitulation period. The 2020 BTC halving cycle resulted in a 591.75% increase in the cryptocurrency’s value to new highs.
Based on historical post-halving trends and the expectation that the current Miner Capitulation is nearing its end, Cryptonary believes that an exponential decay model suggests BTC’s price, currently at $64,700, could potentially peak at $223,000 in this cycle.
Another crypto analyst, Michael van de Poppe, shared a post on X predicting that Bitcoin could rally towards $110,000. Poppe noted that Bitcoin miners are still capitulating, and the true hash rate drawdown has reached new lows, indicating levels similar to those seen during the FTX collapse in 2022.
Poppe suggested that the heavy drawdown in hash rates marks a cycle low, signaling that the worst period of the current cycle may have passed. Historically, such lows often precede price recoveries, and since the news about Mt. Gox’s repayment plans, BTC’s price has already increased by 20%. Based on this positive market response, Poppe predicts that Bitcoin’s next upward move could reach $110,000 from its current price of $64,479.
In conclusion, both analysts are optimistic about Bitcoin’s future price trajectory, with targets of $200,000 and $110,000 set for the cryptocurrency. These forecasts are based on historical trends, Miner Capitulation patterns, and market dynamics, suggesting that Bitcoin could be on track for significant price appreciation in the coming months and years.
