Bitcoin's price recovery is contingent upon the exit of weak miners and hash rate recovery, according to Willy Woo, a crypto analyst. Historical trends indicate that Bitcoin's recovery usually starts after miner capitulation. US Bitcoin ETF outflows continue to put further selling pressure on Bitcoin recently. Despite the massive purchase of over 11,900 Bitcoin by MicroStrategy, the world’s largest cryptocurrency continues to lose steam falling further beneath $65,000 levels.

After facing a strong rejection at $72,000 earlier this month, the BTC price has been heading southwards correcting over 10% from the June high. As Bitcoin loses crucial support levels, the chances of a BTC price drop to $60,000 are growing further. As per historical trends, the Bitcoin miner capitulation has continued for months after the halving events. Putting his focus on Bitcoin miner capitulation and hash rate recovery, analyst Willy Woo explains that the Bitcoin price recovery hinges majorly on weak miners exiting the market along with the subsequent recovery of the hash rate.

Willy Woo compared the current situation with the hash recovery during the previous halving cycles of 2017 and 2020. This typically coincided with the slow summer months when usually the affluent Wall Street investors go on a vacation. As of now, it’s been already 61 days since the Bitcoin halving event 2024. On the other hand, the US Bitcoin ETFs witnessed the fifth consecutive day of outflows on Thursday, June 20. Yesterday, the total Bitcoin ETF outflows stood at $140 million with Grayscale’s GBTC reporting a single-day outflow of $53.1 million while the BlackRock Bitcoin ETF IBIT experienced minuscule inflows of just $1.48 million.

These consecutive Bitcoin ETF outflows show that institutional interest in Bitcoin has been waning a bit amid the Fed’s current stand on holding interest rates higher for a longer-than-expected period. This has also led to the selling pressure on Bitcoin price. Bitcoin has been struggling to regain momentum after hitting its all-time high (ATH) of $73,750 in March 2023. Understanding the dynamics behind Bitcoin’s price movements provides insight into future trends. Prominent crypto analysts have laid out key conditions that might signal the next bullish phase for Bitcoin.

According to crypto analyst Willy Woo, Bitcoin needs to shed “weak miners” and see a hash rate recovery for the next bull run to commence. In a recent post on X (formerly known as Twitter), Woo elaborated that inefficient miners operating outdated equipment and incurring high costs must exit the market. The consolidation of stronger, more efficient mining operations is essential for stabilizing and then boosting Bitcoin’s price.

Woo explained that miners’ income typically decreases significantly following a Bitcoin halving, leading those using less efficient hardware to sell their BTC holdings to cover operational expenses. This sell-off exerts downward pressure on Bitcoin’s price. However, once these less efficient miners exit the market, the stronger miners remaining are likely to benefit from the reduced competition, potentially driving a price recovery. Interestingly, Woo noted that Bitcoin’s hash rate has taken an unusually long time to recover this cycle, compared to the 24 and 8 days it took during the 2017 and 2020 cycles, respectively. As of now, it has been over 61 days without a full hash rate recovery, significantly longer than expected. This prolonged period can potentially reset market dynamics once recovery is achieved.

Rekt Capital, another noted crypto analyst, has echoed the sentiment that Bitcoin’s current consolidation phase is not unusual. He describes the current market behavior as an expected part of the post-halving re-accumulation phase. Rekt Capital believes that once this phase concludes, Bitcoin will enter a parabolic uptrend, potentially beginning in September and leading to a new market top around September or October next year. Rekt Capital advises investors to remain patient during this re-accumulation phase. He warns that Bitcoin’s price could experience significant retracements, possibly convincing some that the bull run is over, only to resume its upward trajectory subsequently. His forecasts aim to reassure investors that current price behaviors are aligned with historical patterns post-halving.

In summary, the path to Bitcoin’s next bull run involves a cleanup of inefficient mining operations, followed by a stabilization and recovery of the hash rate. Both Woo and Rekt Capital underscore the importance of these dynamics, suggesting that Bitcoin’s price stability and eventual uptrend are contingent upon these factors. Investors are encouraged to hold their positions through these turbulent times, anticipating the start of a new bullish phase in the coming months.