Crypto analyst Willy Woo has shed light on what needs to happen for Bitcoin to bounce back and continue its bull run after a prolonged decline. The flagship cryptocurrency has been struggling to regain momentum ever since reaching its all-time high of $73,750 in March earlier this year.
In a recent post on X (formerly Twitter), Willy Woo emphasized that Bitcoin’s recovery hinges on the demise of weak miners and the subsequent recovery of the hash rate. He explained that inefficient miners operating outdated hardware and facing high operational costs are being pushed into bankruptcy, while others are compelled to upgrade to more efficient equipment. This phenomenon has been exacerbated by the halving event, which slashed miners’ income while leaving their expenses unchanged.
According to Woo, the ongoing capitulation of these miners is a major factor contributing to Bitcoin’s persistent downtrend. However, he believes that once these miners have finished liquidating their holdings, the stage will be set for a significant price recovery in the cryptocurrency.
Woo noted that the current wave of miner capitulation is unprecedented, as it has taken longer to unfold compared to previous cycles. He highlighted that Bitcoin’s hash rate recovery has been sluggish this time around, taking over 61 days to show signs of improvement, whereas in 2017 and 2020, the recovery took only 24 and 8 days, respectively.
Despite the challenges facing Bitcoin, crypto analyst Rekt Capital remains optimistic about the cryptocurrency’s prospects. He reassured investors that Bitcoin’s consolidation within its current range is normal and indicative of the re-accumulation phase following the halving. Rekt Capital predicted that Bitcoin will soon transition into a “parabolic uptrend” phase, propelling it towards its market peak for this cycle.
Looking ahead, Rekt Capital suggested that the parabolic uptrend phase could commence as early as September, with the market top potentially occurring in September or October of the following year. He cautioned against panic selling, advising investors to weather potential retracements that may create doubts about the sustainability of the bull run before Bitcoin resumes its upward trajectory.
In conclusion, both Willy Woo and Rekt Capital are optimistic about Bitcoin’s recovery and future price performance, highlighting the importance of miner capitulation and hash rate recovery in paving the way for a resurgence in the cryptocurrency’s value. Investors are advised to stay patient and resilient amidst market fluctuations, as Bitcoin navigates through its current phase towards a potential market peak in the coming months.