By Scott Matherson, Bitcoinist.com, 2024-07-18
As Miner Capitulation in the crypto market slowly comes to an end, a crypto analyst maintains an optimistic future outlook on the price of Bitcoin (BTC), the world's largest cryptocurrency. The analyst has set a massive $200,000 price tag for BTC, marking a new all-time high for the pioneer cryptocurrency.
Bitcoin Price Set To Hit $200,000
In an X (formerly Twitter) post on July 17, a crypto analyst identified as ‘Cryptonary' forecasted that Bitcoin's price is poised to hit $223,000 in the near future. The analyst's optimistic projection is based on BTC's historical trends and Miner Capitulation after each halving cycle.
Sharing a price chart of BTC's Hash Ribbon, Cryptonary highlighted BTC's Miner Capitulation at bear market lows, after each Bitcoin halving and black swan events like FTX collapse, COVID-19, and crypto banning in China.
According to Cryptonary, historically, the conclusion of Miner Capitulation periods following the cyclic Bitcoin halving events has led to substantial price surges in Bitcoin's value in the subsequent months and years. The analyst also noted that the Hash Ribbon metric, a prominent market indicator, suggests that BTC tends to hit its bottom when miners capitulate due to high mining costs and low revenue.
Miner Capitulation here means when miners turn off their hardware and stop mining Bitcoin to begin selling off their coin reserves. This occurs when mining operations become unprofitable, or BTC's price falls below a certain level.
The Hash Ribbon metric underscored by Cryptonary correlates with Bitcoin's previous declines to new lows during Miner Capitulation periods from May and June. At the time, various crypto analysts had suggested that BTC may have hit its price bottom, triggered by massive sell-offs executed by BTC miners.
Identifying various Miner Capitulation periods and their characteristics, Cryptonary outlined past bull cycles where Bitcoin's price experienced an explosive surge after each Miner Capitulation period and Bitcoin halving event. Following the 2012 halving and the subsequent Miner Capitulation phase, BTC saw its price increase by a whopping 5,110.6%.
In 2016, marking another Bitcoin halving year, the price of BTC surged as high as 3,346.5% after its Miner Capitulation period. Lastly, the 2020 BTC halving cycle saw the cryptocurrency increase by 591.75% to new highs.
Based on historical post-halving trends and the assumption that current Miner Capitulation is set to end soon, Cryptonary has stated that an exponential decay model suggests that BTC's price, at $64,700, could reach a potential peak of $223,000 in this cycle.
Market Expert Sees Bitcoin Reaching $110,000
Market Expert Sees Bitcoin Reaching $110,000
In another X post, crypto analyst Michael van de Poppe predicted that Bitcoin (BTC) could be getting ready for a new rally towards $110,000. The analyst disclosed that at the bottom, Bitcoin miners are still capitulating, and true hash rate drawdown has reached new lows signaling levels as severe as during the FTX collapse in 2022.
According to the crypto analyst, the heavy drawdown in hash rates marks a cycle low, suggesting that the worst period of the current cycle may have been breached. Historically, such lows often precede price recoveries, and since the news about Mt Gox's repayment plans, BTC‘s price has increased by 20%. Based on this positive market response, the market expert predicts that Bitcoin's next leg up could be $110,000 from its price of $64,479, at the time of writing.
