“Bull Run is Not Over”: Price Of Bitcoin Bottoming Out?

Bitcoin (BTC) is still trading below crucial levels, which has raised speculations about the end of the bull run season.

Amid these rising sentiments, CryptoQuant analyst Woominkyu claims the price of Bitcoin is bottoming out, and the bull run is not over.

The analyst compared Bitcoin’s current trend to past performance when the hash price plummeted.

Insights from the Mining Hash

In a recent CryptoQuant Quicktake post, Woominkyu highlighted a chart that showed the correlation between Bitcoin price and hash price.

The chart pointed to a declining hash price, which coincides with the bottom of Bitcoin prices.

The analyst emphasized that periods of lower hash prices have historically aligned with the bottoms of Bitcoin prices.

Taking past performance into consideration, Woominkyu suggests Bitcoin’s price is nearing a bottom, aligning with the current low hash price.

Hash price is a critical metric representing the earnings a miner can expect for each exahash of computing power contributed to the Bitcoin network.

The value is calculated by dividing the daily mining revenue by the total network hash rate.

When the hash price is low, miners generate less revenue for the same amount of computational work.

This is primarily due to reduced transaction fees or a lower Bitcoin price.

Thus, the recent low hash prices suggest increased competition among miners, resulting in the overall reduced profitability of mining.

State of the Bitcoin Ecosystem

Although Bitcoin has slightly recovered from today’s morning trading session, the price is still below the $90,000 mark.

BTC price was trading at $84,534, down 0.6% over the previous day and 14% in the past week.

Despite the decline, the daily trading volume increased by 25% to $66.5 billion, indicating investor’s renewed interest.

Meanwhile, the Bitcoin price prediction sentiment is bearish, while the Fear & Greed Index shows Extreme Fear at 10.

The recent BTC price decline stems from whale movement and low sentiments in the spot ETF market.

CryptoQuant CEO Ki Young Ju recently highlighted that Coinbase whales are making bold Bitcoin moves.

Notably, strong activity from whales often indicates that holders are preparing to sell or move funds due to high volatility.

In recent weeks, persistent outflows from the spot Bitcoin Exchange-Traded Fund (ETF) have also contributed to declining prices.

On Wednesday, February 26, the ETFs saw outflows reaching $754.6 million, per Farside Investors data.

Bitcoin Price Forecast

The price of BTC may have set a local resistance of $86,000 on the hourly chart.

Bears may resurface if the daily bar closes far from this resistance, leading to BTC dropping to the $85,000 range.

As a result, bulls will need to restore the rate above $90,000 if they want to get back in the game.

Until this happens, bears might keep controlling the market situation. A weekly closure below the $89,392 level in the mid-term could see BTC plummeting to the $80,000 area.

However, technical analysis recently revealed a bull flag formation, a pattern many analysts view as a precursor to rising prices.

A weekly candlestick close above  $101,800 could confirm the formation and set the stage for a major rally.