In the latest BTC price update, Bitcoin price is selling off at press time, and this may continue until all weak Bitcoin miners are purged.
Even with current affairs, many analysts believe Bitcoin will cement its position in the financial markets in 2024.
True, BTC might be struggling to sustain gains of Q1 2024. However, what’s clear is that the uptrend still remains, and prices are trading not far off from all-time highs.
nearly all #bitcoin miners are selling 100% of their coins, while $CLSK is managing to Hodl their BTC & use their relatively USD balance sheet to acquire new capacity. pic.twitter.com/S2MMRQFjOW
— matthew sigel, recovering CFA (@matthew_sigel) June 18, 2024
Bitcoin Price Snapshot: Does BTC Price Need One Final Sell-Off?
This barrier is at around $74,000, and bulls need to smash this line for sustained gains.
(BTCUSDT)
After initial gains in early June, Bitcoin prices are turning around, with bears leading the charge. At this time, Bitcoin is down roughly- 10% from all-time highs.
At this pace, technical candlestick arrangement shows that the next target for aggressive bears is $60,000. If this level is broken, preferably with a sharp expansion in trading volume, the odds of BTC dropping to as low as $56,500 won’t be discounted.
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Willy Woo: Will a Bitcoin Miner Capitulation Support Bitcoin Prices?
As bulls hope for the best, Willy Woo, an on-chain analyst, thinks this weakness will persist until all weak miners are flushed from the system.
Once there is a clear hash rate recovery, the bleed will likely be plugged, and prices will turn higher, as they did in Q1 2024.
Woo said the current unusually slow pace of miner capitulation following the Halving on April 20 appears to be the primary cause of weakness.
Though there could be market factors to consider, including the United States Federal Reserve easing rates, the analyst specifically mentioned the role of Ordinal Inscriptions. Users can “create” NFTs through this tool, permanently etching files, including images or videos, on each satoshi.
As inscriptions explode, the demand for block space increases, meaning transaction fees rise. Rising fees help keep inefficient miners afloat, further prolonging the capitulation process.
Woo also notes that historically, miner capitulation events have coincided with sharp market movements.
For now, it is a matter of when.
As prices fell, analysts said weak, inefficient miners were folding and selling their BTC holdings.
The Bottom Line: Efficiency Matters, The Wait Continues
However, for those still operational, all they have to do is get rid of their outdated hardware and slash operating costs. This means they offload BTC to cover losses or upgrade to more efficient equipment.
This selling pressure recedes once these miners are eliminated. In turn, this will leave the network in the hands of stronger, more resilient miners. These entities will likely to hold their Bitcoin in anticipation of future price increases.
With 61 days since the halving, the wait for more miner capitulation continues. This extended period suggests that the current market downturn might persist. It will stop when the network undergoes a thorough shakeout, separating strong miners from weak ones.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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