Bitcoin (BTC) May Have Bottomed as Correlation with Hash Price Indicates; This May Be the Last Buying Opportunity at a Discount
- PHPzOriginal
- 2024-08-31 00:05:41336browse
An analysis from CryptoQuant shows that Bitcoin may have bottomed, as its correlation with the hash price indicates. This may be the last time to buy Bitcoin at a discounted price, as historical data indicates an impending rally.
An analysis from CryptoQuant suggests that Bitcoin may have bottomed out, considering its correlation with the hash price.
This could be the last chance to buy Bitcoin at a discounted price, as historical data indicates an impending rally.
According to an analysis from CryptoQuants, Bitcoin may have or is close to bottoming at the current market price. The data is based on the historical correlation between Bitcoin’s price and mining hash price. CryptoQuant suggests that the Bitcoin hash price has reached its lowest point, a signal that Bitcoin’s bottom is not far off.
The Bitcoin hash price is the revenue miners generate per-tera hash, or the expected daily worth of 1TH/s of hashing power. This hash price is a function of the Bitcoin’s market value, mining difficulty, block subsidiary, and transaction fees.
Over time, mining profitability has decreased. The Bitcoin network was designed to halve mining rewards every four years, thus increasing difficulty and reducing the hash price. Currently, miners only make 3.125 BTC for completing each block of Bitcoin, compared to the 50 BTC they got in 2009.
A Buy Opportunity
The CryptoQuant analysis suggests that Bitcoin’s correlation with the hash price could mean that investors who bought Bitcoin at this level may have bought the bottom. Bitcoin is currently trading below $60,000, which is over 18% away from its all-time high.
Data from the previous bull cycles showed that Bitcoin rallied significantly on this indicator. In 2017, Bitcoin rallied from below $2,000 to a peak of $19,106 as the hash price bottomed out. The same scenario occurred late in 2020 as the largest crypto asset went on to rally over 660% from $10,000 to the previous all-time high of $66,953.
If a scenario close to these were to reoccur, then Bitcoin may have bottomed out at $48,000 for this cycle and could rally past $350,000. This puts into perspective the percentage increment seen from Bitcoin at this level in the previous cycles.
However, veteran analyst Peter Brandt warned of an exponential decay in Bitcoin’s price. As The Crypto Basic reported earlier, he urged caution as Bitcoin continued to range in a triangle pattern.
At press time, Bitcoin trades at $59,524, down less than 1% in the past 24 hours. BTC is also down 2.6% in the past seven days and 10.65% in the past month.
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