Bitcoin (BTC) may offer investors a rare opportunity to buy in a support area with a “100% bulls hit rate,” according to new analysis.
in its latest renew On Aug. 29, crypto asset manager Capriole Investments told investors to watch out for BTC prices falling to $24,000.
Capriole Founder ‘Very Confident’ of $23,000 BTC Price Support
Bitcoin continues to trade sideways near $26,000, but there is no shortage of market participants predicting further declines in the price of Bitcoin.
$25,000 is still a popular target, but a long-term trendline with an impressive history is more interesting for Capriole.
Chief among these is Bitcoin’s weekly support at $24,000 and its so-called “electricity price” (EP). This refers to the global average electricity cost per BTC miner, which is currently a little over $23,000.
Throughout the history of Bitcoin, EP has been a strong support for the long-term frame, and the fall to a two-year low in November 2022 is no exception. EP hit a low of just over $14,000 in late December.
Capriole thus describes EP as a “historic hard price floor with a 100% long hit rate”.
“Should we get there, these price points form a very strong confluence with the opportunity presented by $23-24K from a fundamental and technical standpoint,” it wrote, referring to technical weekly levels and EP, respectively.
in the subsequent part X postsCapriol also described the trendline as a “promising and rare structure” for Bitcoin to “watch.”
Capriole founder Charles Edwards went on to say that $23,000 should be “rock-solid support.”
“If we get there in the next few weeks, $23,000 is a rock solid support and an incredible long-term opportunity that I’m very confident about,” he said. tell x Subscribers of the day.
“The cost of electricity has hit 100% of the time in Bitcoin history. It’s my favorite long-term Bitcoin metric.”
Bitcoin Miner Pain Is Coming?
BTC/USD trades near $26,000, according to data from Cointelegraph Markets Pro and Wall Street open on Aug. 29 transaction view.
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Analyzing the financial vitality of miners, James Straten, a research and data analyst at cryptocurrency insights firm CryptoSlate, predicted that Bitcoin price action will resurface from 2019 onwards as the market lays the groundwork for the next bull run.
“Bitcoin miner revenue is currently at $25.5m. Just above the 365 SMA at $22.5m,” he said. famous.
“This looks very reminiscent of the 2019 playbook. Should be broken soon.”
Accompanying data from on-chain analytics firm Glassnode shows that in 2020, miners earned less than the annual average.
Straten based the findings of Dylan LeClair, a senior analyst at digital asset fund UTXO Management, who described the phenomenon as “traditional.”
This article does not contain investment advice or recommendations. Every investment and transaction involves risk, and readers should do their own research when making a decision.
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