Critical Bitcoin Metric Shows Potential Market Turnaround

Jamie Coutts from Real Vision highlights a critical Bitcoin (BTC) indicator showing positive signs again.

The slowing decline in Bitcoin’s hashrate, a measure of the network’s processing power, often signals a potential momentum shift for Bitcoin.

Coutts emphasizes that this prediction hinges on the stabilization of BTC’s hashrate decline.

Observing that #Bitcoin‘s hashrate decline is slowing, which typically precedes a bottom and reversal of the bearish cross post-May halving.

However, this is predicated on a stabilization in the downtrend. The market is still digesting the supply overhang.

Notably, the %… pic.twitter.com/1Xyb8MHBNn

— Jamie Coutts CMT (@Jamie1Coutts) July 11, 2024

He notes that the current gap between the 30 and 90-day moving averages of the hashrate mirrors previous contractions but is less severe than after the 2020 halving.

Regarding the impact of Bitcoin sales from the defunct exchange Mt. Gox, Coutts acknowledges short-term price pain but sees long-term benefits.

The release of Mt. Gox reserves and government sales alleviates the supply overhang, distributing coins to a broader base of holders and strengthening the network.