Bitcoin hash price drop mirrors March 2020 BTC price zone.

Bitcoin (BTC) is presenting a new “buying opportunity” as miners continue to face profitability challenges. On August 30, CryptoQuant, an onchain analytics platform, suggested in one of its Quicktake blog posts that the price action of BTC is nearing a long-term low.

A comparison of hashprices indicates that the BTC price is currently at rock bottom. Despite challenges faced by both miners and hodlers, the long-term metrics for Bitcoin continue to support a bullish narrative.

Miners are encountering obstacles following halving profits, and recent data shows that their hash price is at a disadvantageous level. The hash price, designed to measure miners’ costs on a per terahash basis, is currently very low.

According to CryptoQuant, historical data shows that periods of lower hash prices have coincided with Bitcoin price bottoms, suggesting that the current low hash price may indicate that Bitcoin’s price is approaching a bottom.

After the market crash caused by COVID-19 in 2020, a similar period of low hash price continued through that year’s halving.

Miners are now returning to accumulation, with data confirming that their BTC reserve balance has increased in recent days to 1,815,832 BTC.

This week, the mining difficulty increased by an expected 3%, bringing the metric close to its all-time high of 90.66 trillion.

Ki Young Ju, CEO of CryptoQuant, suggests that the mining sector in the United States is showing signs of sustainability, with the miners’ capitulation almost over and the hashrate approaching all-time highs. Mining costs in the US are approximately $43,000 per BTC, indicating that the hashrate is likely to remain stable unless prices drop below that level.

SOURCE

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top