Bitcoin Hash Price Hits New Low — Is It Time To Buy?
August 31 2024 - 9:30AM
NEWSBTC
The price of Bitcoin failed to capitalize on its recent momentum
over the past week, losing its hold above $60,000 yet again in
August. As of this writing, the premier cryptocurrency is valued at
$59,131, with no significant price change in the past day.
Interestingly, the Bitcoin price appears to be nearing a bottom and
gearing for a rebound, according to the latest on-chain data.
Is Bitcoin Price Resuming Its Bull Run? A pseudonymous analyst on
CryptoQuant’s Quicktake platform has revealed a “buying
opportunity” for Bitcoin, the largest cryptocurrency in the market.
This analysis is based on the changes in the Bitcoin hash price in
the last few weeks and its potential implications on the BTC price.
Related Reading: Bitcoin’s Sudden Drop: Could This Be a Setup for a
Massive Rally? Analyst Weighs In The hash price measures the daily
revenue generated by BTC miners per terahash per second (TH/s).
This metric is calculated by dividing the total daily revenue of
miners by the network hash rate. The hash price basically estimates
miners’ profit based on the computational power they contribute to
the network. The chart above demonstrates the relationship between
the Bitcoin price and the hash price. “The highlighted sections in
the chart (blue boxes) indicate periods where the Hash Price
dropped to lower levels, corresponding to times when Bitcoin prices
were also at or near their lowest points,” the analyst said about
the chart. As of this writing, the Bitcoin hash price stands way
below $0.1, the lowest level since 2023. Historically, periods of
extremely low hash prices have coincided with Bitcoin price
bottoms, with a price rebound often coming after. With the current
hash price at an all-time low, it appears that Bitcoin’s price
might be bottoming out and preparing for a comeback. BTC Market
Back In Bear Phase? In a new post on X, CryptoQuant’s head of
research Julio Moreno revealed that the Bitcoin market cycle
indicator is back in the bear phase. As shown in the chart below,
this indicator has been swinging from the bull to the bear phase in
the past few weeks, mirroring the current inconsistencies in the
market. Moreno also sounded a warning about the recent slump in
BTC‘s value to below the $60,000 mark. According to the expert, if
the price breaks $56,000 to the downside, the potential for an even
more significant correction increases. Related Reading: How Will
The US Upcoming Fed Rate Cut Impact Bitcoin? QCP Analysts Weigh In
Featured image from iStock, chart from TradingView
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