Crypto analyst Willy Woo recently explained what needs to happen for Bitcoin to continue its bull run. The flagship crypto has been on a decline for a while now and has failed to make a significant run since hitting its current all-time high (ATH) of $73,750 in March earlier this year.
What Needs To Happen For Bitcoin To Recover
Willy Woo mentioned in an X (formerly Twitter) post that Bitcoin will recover when the “weak miners die and hash rate recovers.” He further explained what it means for BTC to shed weak hands, stating that “inefficient miners running old hardware and high costs go into bankruptcy. While others are forced to upgrade hardware that’s more efficient.”
This usually happens because miners’ income got halved following the Bitcoin halving. Meanwhile, they still bear the same costs even after the halving event. Willy Woo mentioned that these force miners to sell their BTC to pay for the losses incurred or hardware upgrades. He believes these miners’ capitulation is what has caused the persistent downtrend in BTC’S price.
As such, Bitcoin is expected to make an impressive price recovery once these miners are done liquidating their Bitcoin holdings. The crypto analyst stated that the miners’ capitulation this time around is one for the record books, considering that it has taken a lot of time since the halving took place. He noted that this was probably due to the ordinal inscriptions, which have boosted the profits of these miners.
Meanwhile, Willy Woo also highlighted how Bitcoin’s hash rate recovery has taken much longer in this cycle compared to previous cycles. He stated that BTC’S hash rate took only 24 and 8 days to recover in the 2017 and 2020 market cycles. However, this time around, it is over 61 days, and Bitcoin’s hash rate has yet to recover.
BTC Will Recover In Due Time
Crypto analyst Rekt Capital has continued to affirm that Bitcoin’s recovery will happen soon. He recently claimed that Bitcoin’s consolidation within this range is not out of the ordinary, noting that the market has witnessed such post-halving ranges in the past. The analyst has also explained that BTC is still in its re-accumulation phase of the Bitcoin halving for now.
Once this phase is done, BTC will move into the ‘parabolic uptrend’ phase which will kickstart BTC’s run to its market top for this cycle. Rekt Capital recently suggested that the parabolic uptrend phase could begin sometime in September. Meanwhile, he stated that based on previous market cycles, BTC’s market top could come sometime in September or October next year.
Rekt Capital has also advised Bitcoin investors against being shaken out of their positions. He stated that Bitcoin could retrace deep enough to convince anyone that the bull run was over, and then it would resume its uptrend.
Featured image created with Dall.E, chart from Tradingview.com
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