Survival of the Fittest: Here’s How Bitcoin’s Next Rally Hangs on Miner Capitulation

Share This Post

Amidst a backdrop of declining Bitcoin prices and economic uncertainty, renowned crypto analyst Willy Woo has offered a forecast that suggests a complex road ahead for BTC, with potential gains on the horizon after some ‘inevitable’ turbulence.

Bitcoin Rally Hangs On Miner Capitulation, How?

Bitcoin’s current market behavior is largely influenced by its miners, whose actions can significantly impact its price. According to Willy Woo, the key to understanding when Bitcoin might start its recovery lies in observing miner capitulation and the subsequent recovery of the hash rate.

Miner capitulation occurs when less efficient miners, unable to sustain profitability, are forced to sell their holdings and exit the market. This phase is critical as it typically decreases selling pressure, allowing for market consolidation and setting the stage for potential price increases.

Woo points out that this cycle is not a quick one. Historical data from previous Halving events, which reduce the reward for mining Bitcoin, show that recovery can take time.

The current cycle appears prolonged, with miners taking longer than usual to capitulate due to the profitability provided by new market mechanisms like ordinal inscriptions. This extended adjustment period might be difficult for investors, but it is a necessary step toward achieving a healthier market.

Bitcoin (BTC) price chart on TradingView

Key Indicators to Watch: Hash Ribbons and Market Signals

Willy Woo emphasizes the importance of monitoring Bitcoin’s hash ribbons. This indicator provides insights into the economic viability of Bitcoin mining.

A reduction in hash ribbons suggests that the cost of mining is becoming more aligned with the market price of Bitcoin, signaling that the worst of the sell-off may be over and a recovery could be forthcoming. In addition to hash ribbons, Woo advises investors to keep an eye on broader market signals.

For instance, the current speculative environment in Bitcoin, marked by a high volume of theoretical trading, requires a series of liquidations to achieve market balance. This clean-up phase, although painful, is essential for setting a solid foundation for the next bull run.

The analyst noted:

I know it sucks, but BTC is not going to break all time highs until more pain and boredom plays out. On the bright side, miners are capitulating and when that is through, it nearly always ends in a huge rally. Look for compressions in this ribbon. Buy and hodl in these regions.

Featured image from DALL-E, Chart from TradingView

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

The Best Crypto to Buy as Bitcoin DeFi is Projected to Unlock Billions in BTC

Now is the perfect time to look for the best crypto to buy, as unleashing Bitcoin into the DeFi protocol could add billions to BTC’s liquidity pool A recent report from Moulik Nagesh of Binance

POPCAT, PNUT, And PENGU Price Prediction After Robinhood Listing Hype

The post POPCAT, PNUT, And PENGU Price Prediction After Robinhood Listing Hype appeared first on Coinpedia Fintech News Key Highlights Meme coins – POPCAT, PNUT, and PENGU gained momentum after

Pi Network Faces Pressure as KYC Deadline Closes In, Whales Pick Up Web3 Mobile Competitor Trading at $0.0045

The post Pi Network Faces Pressure as KYC Deadline Closes In, Whales Pick Up Web3 Mobile Competitor Trading at $00045 appeared first on Coinpedia Fintech News Pi Network (PI) has become a household

Near Protocol Price Prediction 2025, 2026 – 2030: NEAR Price To Record 2X Surge?

The post Near Protocol Price Prediction 2025, 2026 – 2030: NEAR Price To Record 2X Surge appeared first on Coinpedia Fintech News Story Highlights The live price of the Near Protocol token is

XRP Price Prediction: Can XRP Grasp $5 as Democrats Try to Stop Crypto Reserve Plan

The post XRP Price Prediction: Can XRP Grasp $5 as Democrats Try to Stop Crypto Reserve Plan appeared first on Coinpedia Fintech News With bullish signals flashing and traders eyeing a potential push

Best New Crypto to Buy as Trump Plans Binance Investment and Turns Bitcoin Maximalist

Changpeng Zhao isn’t exactly the stereotypical criminal But the Binance founder did plea guilty, back in 2023, to violating anti-money-laundering (AML) laws And as such, he is a convicted felon