Here’s why that’s good news

Bitcoin’s hash price, a metric that measures miners’ earnings per terahash, or computing power, has fallen to its lowest level ever. According to recent data, this is a sign of the upcoming bullish momentum.

A Quicktake by CryptoQuant analyst Woominkyu revealed that the current level of the bitcoin hash price indicates a good buying opportunity.

A Buying Opportunity

Woominkyu shared a chart highlighting the relationship between the price of bitcoin and the network’s hash price. The chart showed periods when a drop in the hash price corresponded with BTC bottoms; therefore, based on historical data, lower hash level periods have occurred concurrently with BTC price lows.

With the hash metric at its lowest level, the price of BTC could be near or already at its bottom, and historical data also shows that such price movements precede significant increases.

At the time of writing, the major crypto asset was in the red after falling from $61,000 to $59,400 in the past 24 hours. Bitcoin had also fallen more than 8% in the past seven days from the $64,700 level. Woominkyu’s analysis suggests that BTC could soar in the coming weeks, further fueled by macroeconomic events.

An Upcoming BTC Rally?

Two weeks ago, CryptoPotato reported that the Bitcoin hash price had fallen to an all-time low of $0.038 per TH/s from the $0.05 per TH/s level recorded shortly after the halving in April The drop coincided with a capitulation of miners and an increase in Bitcoin’s hash rate.

A higher Bitcoin hash rate indicates more difficulty for miners, as producing blocks becomes more complex and competitive, demanding more computing power.

At the time, miner outflows also increased as smaller entities sold some of their holdings and reduced their reserves to stay afloat. Unfortunately, this cohort of market participants suffered massive losses in their sales as BTC declined to $49,000 amid the macroeconomic crisis stemming from the falling Japanese yen.

Interestingly, historical data indicates that miner capitulation events and higher miner exits are often seen near BTC price lows in bull markets. This reinforces Woominkyu’s prediction that the crypto market could soon witness a bitcoin rally.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!