Bitcoin
Only when can BTC price recover!
Markets are heading towards the end of the first half of the year and, therefore, significant volatility is expected. With the latest price action, bears demonstrated enormous dominance as Bitcoin price fell below key support. On the other hand, traders and institutions do not appear optimistic as whales prepare for the next bull run, which has not yet begun.
The main concern among market participants is that the BTC Price is not triggering a strong recovery. After a massive pullback, bulls often spring into action to accumulate the token at a discounted price, which starts a strong and quick rally. This time, we are witnessing a drop in trader confidence and bullish interference, due to which the pace of the rally has fallen to a large extent.
A popular analyst, also known as Willy Wooshares an interesting reason why BTC price is not recovering after a correction.
It has been more than 100 days since the price of BTC consolidated within a pre-determined range. The analyst believes that miner behavior strongly influenced the recovery, as the “weak miners” did not die, which prevented the hate rate from recovering. Here, the analyst refers to miners as “weak” who are inefficient in handling the cost of mining after their income halved following the Bitcoin halving.
As a result, miners are forced to sell their BTC to pay for losses or hardware upgrades. This creates enormous selling pressure, which ends when all these miners liquidate and only their strong hands continue to hold out. During the previous two halvings in 2016 and 2020, the hash rate recovered after 24 and 8 days respectively. Meanwhile, the hash rate is still struggling even after 62 days of halving at the moment.
The hash rate has maintained a strong and upward trend since the price recovered in the final weeks of 2023 and reached highs of 717 billion TH/s. Levels have dropped significantly and are unable to recover. Therefore, analysts believe that the hash rate is expected to recover only when all these weak miners ‘die’, which could initiate a strong recovery in Bitcoin (BTC) prices. Until then, the consultation phase may continue for an indefinite period.