Rally

2024

Bitcoin

when

Amidst a backdrop of declining Bitcoin prices and economic uncertainty, renowned crypto analyst Willy Woo has <a href="https://twitter.com/woonomic/status/1803926249036710234?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">offered</a> a forecast that suggests a complex road ahead for BTC, with <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-and-solana-brace-for-quiet-q3-what-crypto-traders-should-know/" target="_blank" rel="noopener ">potential gains</a> on the horizon after some ‘inevitable’ turbulence. 
<h2 id="bitcoin-rally-hangs-on-miner-capitulation-how">Bitcoin Rally Hangs On Miner Capitulation, How?</h2> 
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 <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-market-alert-german-government-agency-sends-425m-worth-of-btc-to-exchanges/" target="_blank" rel="noopener ">selling pressure</a>, 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. 
<blockquote class="twitter-tweet"> 
 I’ll break it down in simple terms. 
 When does <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#Bitcoin</a> recover? It’s when weak miners die and hash rate recovers. 
 This one is for the record books as it’s taking a lot of time for miner capitulation post-halving. 
 Probably can thank ordinal inscriptions boosting profits. <a href="https://t.co/19MB0b8mHO" target="_blank" rel="noopener nofollow">pic.twitter.com/19MB0b8mHO</a> 
 — Willy Woo (@woonomic) <a href="https://twitter.com/woonomic/status/1803926249036710234?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">June 20, 2024</a>
</blockquote> 
The current cycle appears prolonged, with miners taking longer than usual to capitulate due to the profitability provided by new <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-miners-reserves-deplete-amidst-high-otc-selling/" target="_blank" rel="noopener ">market mechanisms</a> like ordinal inscriptions. This extended adjustment period might be difficult for investors, but it is a necessary step toward achieving a healthier market. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/3lL8S9p8/" alt="Bitcoin (BTC) price chart on TradingView" width="2770" height="1496"> 
<h2 id="key-indicators-to-watch-hash-ribbons-and-market-signals">Key Indicators to Watch: Hash Ribbons and Market Signals</h2> 
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 <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-crash-below-66000/" target="_blank" rel="noopener ">market signals</a>. 
<blockquote class="twitter-tweet"> 
 Here’s a view of just how much paper bets on <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">#Bitcoin</a> there is right now. 
 The solid yellow chart is a z-score oscillator looking at how significant it is locally. 
 We need a solid amount of liquidations still before we get the all clear for further bullish activity. <a href="https://t.co/tswxQwxlc1" target="_blank" rel="noopener nofollow">https://t.co/tswxQwxlc1</a> <a href="https://t.co/TwGG5tf50z" target="_blank" rel="noopener nofollow">pic.twitter.com/TwGG5tf50z</a> 
 — Willy Woo (@woonomic) <a href="https://twitter.com/woonomic/status/1803300427733127407?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">June 19, 2024</a>
</blockquote> 
For instance, the current speculative environment in Bitcoin, marked by a high volume of theoretical trading, requires a series of liquidations to achieve <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-consolidation-continue-hedge-funds-throw-in-towel/" target="_blank" rel="noopener ">market balance</a>. This clean-up phase, although painful, is essential for setting a solid foundation for the next bull run. 
The analyst <a href="https://x.com/woonomic/status/1803300431180796110" target="_blank" rel="noopener nofollow">noted</a>: 
<blockquote>
 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.
</blockquote> 
Featured image from DALL-E, Chart from TradingView

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

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