The crypto asset manager firm shared analysis that Bitcoin (BTC) price is predicted to be stuck at US$23,000 before rebounding.
Cointelegraph quoting Capriole Investments, recently, urging investors to pay attention to the drop in BTC price to US$24,000.
New analysis from Capriole Investments introduces Bitcoin price metrics with a history of exceptional accuracy, with success rates long up to 100 percent.
This metric indicates that BTC price is expected to set the stage for a significant recovery, with a potential price floor of US$23,000.
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Capriole Founder Is Very Confident in Supporting the US$23,000 BTC Price
Media crypto launch, US $ 25,000 remains a popular target, but for Capriole, a long-term trend line with an impressive history is more attractive.
“One is the Bitcoin weekly support zone of US$24,000 and the so-called “Price of Electricity” (EP). This refers to miners’ average electricity bill per BTC worldwide and currently stands at a little over US$23,000.”
Further Cointelegraph explained, EPs have served as strong long-term support throughout Bitcoin’s history, with a drop to a two-year low in November 2022 being an exception.
At the end of December last year, the EP reached level lows of just over US$14,000. Because of this, Capriole describes the EP as a historically strong price floor and a level with 100 percent long accuracy.
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“These two price points provide a very strong confluence from a fundamental and technical perspective to the opportunities offered by US$23-24K, should we achieve them,” wrote of technical and EP weekly levels, respectively.
Capriole founder Charles Edwards said that the US$23,000 price level should act as very strong support for BTC.
“I feel very confident that US$23k will be very strong support and a great long-term opportunity if we achieve it in the coming weeks,” he told X customers that day.
“Electricity prices have been 100 percent accurate throughout the history of Bitcoin. This is my favorite long-term Bitcoin metric.”
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However, this narrative does not end with mere price predictions. A view from an analytics company on-chain Glassnode describes the broader picture of the Bitcoin ecosystem.
According to their data, para Bitcoin miner currently earn less than their annual average.
This could indicate a potential challenge for miners in the near future, affecting the overall dynamics of the network.
Dylan LeClair, senior analyst at digital asset fund UTXO Management, refers to this phenomenon as a tradition in the crypto space.
The periodic challenges faced by miners underscore the complexity of the cryptocurrency ecosystem and its unique economic model. [ab]
2023-08-31 04:10:31
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