Factors Inhibiting BTC Rally, PEPE Price Jump, and BlockDAG's Latest Wins
6/12/20243 min read
The increasingly thick Bitcoin Miner Capitulation situation is being interpreted as the latest obstacle to the BTC rally amidst Bitcoin prices which appear to be weakening. Meanwhile, the price of the meme coin PEPE, which has strengthened nicely in the last 24 hours, can still technically fly higher. Other news is about BlockDAG's latest achievements, which are still in the presale stage.
Bitcoin Miner Capitulation Becomes a Factor Inhibiting BTC Rally
Bitcoin Miner Capitulation is said to be one of the factors inhibiting the BTC rally. Bitcoin Miner Capitulation is a situation where Bitcoin miners (who are responsible for validating transactions and securing the Bitcoin blockchain network) are forced to sell a large portion of their Bitcoin holdings.
This usually occurs when mining costs (including electricity, hardware, and operational costs) exceed the income that can be generated compared to mining rewards and transaction fees, thus making the mining operation unprofitable. So, when miners experience “capitulation,” they sell their Bitcoin holdings, often in large amounts, to cover mining costs.
This increase in selling pressure could lead to a further decline in Bitcoin prices, aka an inhibiting factor for the BTC rally.
Capitulation may also result in a temporary decrease in mining hash rate (total computing power dedicated to mining), as some miners cease their operations.
Regarding the increase in capitulation, CryptoQuant Head of Research Julio Moreno emphasized that there are significant signs of Bitcoin miner capitulation. On Monday (10/6/2024), for example, miners sold 1200 Bitcoins, marking the largest daily sales volume by a miner since the end of March 2024. The latest BTC price on Wednesday evening was observed to be around US$67,400, down slightly by 0.48 percent in the last 24 hours, after falling to US$66 thousand, just before the FOMC meeting.
According to Moreno, these sell transactions were carried out using over-the-counter (OTC) techniques, not on exchanges, indicating that miners chose large, closed trades that were not expected to immediately affect market prices. Moreno also noted this month OTC Bitcoin transactions for miners surged by 54,000 BTC, reaching the highest point this year. The increase in Bitcoin transfers using OTC methods suggests that miners may be preparing to sell more Bitcoin, perhaps due to concerns about a potential price drop or an urgent need for cash.
Following the recent halving, many mining companies and individual miners have indicated that they are unable to maintain profitable operations, which may lead to a potential exodus from the industry at least temporarily before it returns.
In line with this, Bitcoin analyst Willy Woo stated that the recent level of liquidation in the crypto derivatives market (futures) could trigger momentum inhibiting BTC's further rally. Woo mentioned that if the next wave of long liquidations continues to drive this trend, Bitcoin could drop to US$62,500 to clear remaining speculative positions.
Woo stressed the importance of clearing “degen” open interest in futures betting, stating that this liquidation must occur before any significant upward movement can resume.
PEPE Slightly Rally 9 Percent, Projection: There is Potential for Further Bullishness
Apart from the news regarding the factors inhibiting the BTC rally, in the meme coin sector, there is PEPE which continues to fly. In the last 24 hours as of Wednesday evening, the PEPE price was positive 9 percent in the range of US$0.00001285, although it has not yet exceeded the week's highest level of US$0.00001513. Technically, PEPE price can relatively remain in the ascending parallel channel, the possibility of bullish continuation remains quite high. Bears previously tried hard to pull the level below US$0.00001, but the recent recovery above US$0.000012 has changed the perspective.
This recovery has caused PEPE price to attract more buying volume, which allowed the price to successfully rebound from lower support. Despite a limited increase in volume, the bulls managed to maintain significant dominance, so the bearish RSI also indicates a bullish divergence.
With this, the path to higher targets has opened and if the bulls maintain their strength, then PEPE price may hit a new ATH near US$0.000018 in the coming days.
BlockDAG's Latest Achievements
Complementing the news about the factors inhibiting the BTC rally and PEPE's good performance, the BlockDAG crypto project, which is currently still in the presale program, claims to have successfully raised funds amounting to US$48.9 million.
Apart from that, there are a number of update notes from the lead developer of this yet-to-be-launched blockchain, that there are updates to the dashboard, namely to the real-time data section for new transaction block data and network statistics. The user interface dashboard has been improved, making it more user friendly.
Other technical update details include: Real-Time Data Aggregation (utilizing algorithms to continuously fetch and update new blocks and transactions without delay), and Data Synchronization (Maintaining consistency between the explorer database and the blockchain network, handling reorganizations and forks automatically efficient). Beyond that there are updates related to parsing, data compression and storage, and data visualization.
"The next steps are to improve the user interface, optimize network performance for high data volume operations, and collect feedback from users for testing before the official release of the blockchain mainnet," stated on the official website.
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