As a seasoned researcher with years of experience in the crypto market, I find myself intrigued by the latest analysis from Woominkyu and Moustache. The drop in Bitcoin’s hash price to historically low levels, as suggested by Woominkyu, seems to be a pattern we’ve seen before – coinciding with Bitcoin’s price bottoming out and subsequent recovery.
Today, Bitcoin (BTC) has dipped below its previous $61,000 peak from yesterday, maintaining its downward trend. Simultaneously, the asset’s hash rate, an essential indicator demonstrating miner profitability, has plummeted to record lows, hinting at challenging times for miners.
As a researcher analyzing cryptocurrency markets, I’ve recently noticed a substantial decrease in hash rates, as suggested by the latest findings from Woominkyu, a renowned analyst at CryptoQuant. This potential dip could signal an excellent opportunity for investors to buy in.
In his study, Woominkyu found that when the hash price – which compares Bitcoin’s price to the earnings miners make for each computing unit – follows a recurring trend, it tends to drop at times when Bitcoin’s price reaches its lowest point.
In simpler terms, Woominkyu explained that the areas shaded in blue on the chart signify instances when the hash rate dropped, which typically occurred during times when the price of Bitcoin hit or approached its all-time lows.
As a researcher studying the trends of Bitcoin’s market history, I find it intriguing to note that previous similar periods have often been preceded by substantial price rebounds. Consequently, my personal perspective leans towards the notion that the current low hash rate might signal an approaching bottom for Bitcoin. This potential dip could present a promising buying opportunity for those investors who are keen on long-term growth.
Lowest Bitcoin Hash Price Indicating the Buy Opportunity
The parts marked in the diagram show instances where the Hash Rate plummeted to its lowest points, which generally coincided with periods when Bitcoin prices were also at their minimums. (By: @Woo_Minkyu)
Link …
— CryptoQuant.com (@cryptoquant_com) August 30, 2024
Another Analyst Points To Re-Accumulation Bitcoin Phase
Following Woominkyu’s viewpoint, cryptocurrency expert Moustache also offered his perspective on the Puell Multiple, a tool utilized for evaluating Bitcoin’s market trends.
According to Mustache’s analysis, the current level of the Puell Multiple – a metric that measures the daily production of Bitcoin against its historical norm – presents one of the most promising chances for Bitcoin accumulation, second only to the opportunities seen in 2022.
Earlier today, Moustache underscored the fact that Bitcoin’s current market standing mirrors key historical phases seen in 2012, 2016, and 2020.
During these periods, the market showed signs of significant growth after a spell of stabilization and gathering strength.
#Bitcoin – The Puell Multiple
Here’s your opportunity for a potential resurgence, coming up after 2022, if you missed the boat earlier – similar to the moments in 2012, 2016, and 2020. $BTC stands where it was during those years.
Even if it doesn’t feel like it, I think we’ve some incredibly exciting months ahead of us.
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 (@el_crypto_prof) August 30, 2024
Moustache indicated that even though the current atmosphere is not favorable, the upcoming months might unveil some “extremely thrilling” advancements in Bitcoin.
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2024-08-31 00:41