A noted cryptocurrency analyst says Bitcoin (BTC) indicators that previously predicted a bullish reversal are flashing green again.
Jamie Coutts, chief crypto analyst at RealVision, said: To tell The slowing decline in Bitcoin’s hash rate is a signal that usually precedes a reversal in momentum for the cryptocurrency king.
However, he noted that this prediction is dependent on the rate of decline of BTC’s hashrate stabilizing.
“We are observing a slowdown in the decline of Bitcoin’s hash rate, which typically precedes the bearish cross bottom and reversal after the May halving. However, this assumes a stabilization of the downtrend; the market is still digesting the supply glut.”
Notably, the percentage difference between the 30-day and 90-day moving averages is consistent with past hash rate contractions, and is not as severe as those following the 2020 halving.”
Coutts said that while the sale of Bitcoin from Mt. Gox, a well-known BTC exchange that went bankrupt after being hacked in 2014, may have a negative impact on Bitcoin’s price in the short term, it will help grow the network in the long term.
“While painful in the short term, the distribution of Mt. Gox reserves and the government sale will help eliminate a troublesome oversupply and distribute the coin to a wider range of holders, which will grow the network and leave Bitcoin in an even better position than before.”
Earlier this month, macroeconomist Alex Krueger and analysts at market intelligence platform CoinShares both shared the view that selling pressure from Mt. Gox would not be so bad for Bitcoin.
At the time of writing, Bitcoin is trading at $57,635, down slightly over the past 24 hours.
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