Mining situation is a factor in the resumption of bitcoin price growth

Bitcoin’s dynamic average hashrate and mining difficulty indicator has indicated that the cryptocurrency’s No. 1 price “bottom” has been reached.
While the bitcoin price is showing a downward correction compared to its recent values, the Hash Ribbons market indicator, which is based on dynamic averages of bitcoin hashrate and mining complexity, indicates that cryptocurrency #1 is gradually finding its price “bottom.
This is the first time such a signal appears on this indicator since last August, and it means that bitcoin mining is now becoming more and more attractive.
Until then, the indicator had been in bearish mode for 71 days, which was the third such period in bitcoin history in terms of duration. This period was longer than the one seen in 2021 and only two days shorter than in 2018, when the bitcoin price was down to $3,100.
The end of bearish phases on the Hash Ribbons indicator, which occurred in the second half of big bitcoin cycles, that is, at least two years after another halving, usually provided some of the most significant bullish signals for traders in the market, as observed in 2012, 2015 and the second half of 2018.
Meanwhile, the market is being impacted by the depressed pressure expectation of further increases in U.S. Federal Reserve interest rates, which may reach 3.75% by the end of next year and only begin to decline to 3.4% in 2024, which is the consensus on the movement of interest rates at the U.S. central bank itself at the moment.
It’s also worth noting that bitcoin has already had a partial recovery from a big drop in its history. Thus, in the first half of 2018, bitcoin price bounced from $6,000 to the level of $11,500, but then collapsed again to $3,200, only to show a significant rebound after that. A similar situation was also observed in 2019 and, perhaps, can be repeated this year, when before a new growth trajectory bitcoin price will test very low values.

Leave a Comment