Bitcoin (BTC) is currently in a downward trend and this does not seem to be changing anytime soon. Yet we don’t have to worry, according to crypto analyst Willy Woo. He predicts that we can expect a recovery soon.
Willy Woo bases his optimism on the relationship between the hashrate of Bitcoin and the price development of the cryptocurrency.
Bitcoin recovery in sight: Hasrate as a key indicator
The hashrate is a measure of the total computing power provided to the network by miners. An increase in the hashrate suggests that mining is attractive, while a decrease indicates that some miners are withdrawing because mining has become unprofitable.
With the hash ribbons indicator, Woo compares a short-term and long-term average of the hashrate. The analyst argues that Bitcoin will recover when “weak miners” capitulate and the hashrate starts to rise. This marks the end of a bearish phase and could indicate a price recovery. The current situation shows that miners are going through a capitulation period, mainly caused by the recent halving of block rewards.
According to Willy Woo, the current capitulation period of miners already lasts 61 days, which is exceptionally long. This suggests that miners will have to adapt to the new economic reality after the halving for a long time.
US Bitcoin Spot ETFs Continue to Disappoint
The US Bitcoin Spot Exchange-Traded Funds (ETFs) continue to show disappointing results. Since Monday last week, funds launched in January have experienced capital outflows for the fifth consecutive trading day, indicating a continued negative trend.
Last Wednesday was the only day with positive inflows, but the funds still lost almost $600 million for the entire week. This downward trend continues this week with losses of $145.9 million on Monday and $152.4 million on Tuesday.
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Source: https://newsbit.nl/crypto-analist-legt-uit-dit-is-wanneer-de-bitcoin-koers-weer-gaat-stijgen/
