Bitcoin’s Hash Rate Taps Record High; Cause for Celebration or Caution?
Bitcoin’s hash rate hit a new all-time high last week, and many investors are rejoicing. However, Gigi Sulivan, an analyst at Cryptoquant, is cautioning investors to be wary of bearish indicators that may arise. Sulivan asserted that Bitcoin’s hashrate surge is not always a bullish sign, and Bitcoin has ended up in a bearish state in the past following a hashrate upsurge.
The analyst points out that a selloff followed every time Bitcoin’s hash rate attained a new all-time high in 2021 and 2022. Sulivan predicts that Bitcoin may follow the same patterns in 2023. Based on last year's seven occurrences, Bitcoin's price may go down by 19.5%, with a minimum move down of 12.5% and a maximum move down of 37%, before experiencing a sell-off. The maximum move-up before a sell-off was around 11%.
Sulivan estimates that Bitcoin may go up to $25,500 before declining to the $18,400 price level. After the dip, Bitcoin is expected to reach an all-time low of $14,500 and a minimum peak price of $20,100. However, the $25,000 mark represents a critical pivot point for many traders, making it difficult to determine how Sulivan's prediction will pan out.
Satoshi-Era Bitcoin on the Move, Charges Crypto Community
In other news, the reactivation of a dormant Bitcoin address after 11 years and the transfer of 412 BTC worth $9.6 million also charged the air for Bitcoin supporters last week. Dormant Bitcoin wallets waking up is not a new phenomenon, with similar activity seen in November 2020 and in March of this year. It is worth noting that the reactivation of old wallets often signifies an over-the-counter trade, which suggests that someone is willing to buy the Bitcoin immediately.
While the origin of the Bitcoin stash in the reactivated wallet is not clear, its astronomical growth in value since its acquisition is a testament to the increasing value of Bitcoin over the years. In 2012, when the wallet last received Bitcoin, its value was just $8, but in the decade since, it has grown by over 120,000,000%. The growth potential is what makes the cryptocurrency industry so exciting for investors, with many speculating on the long-term value of digital assets.
The growth of the cryptocurrency industry over the years has been remarkable, with many new platforms and protocols being developed. However, despite the growing interest and investment in cryptocurrencies, there are still many questions surrounding their regulation and security. As with any new industry, there are risks involved, and investors should exercise caution when entering the market.
Bitcoin’s Price Movement Amid All These
Following a sharp rejection from the $23,000 price area last week, Bitcoin is now on a downward spiral toward the $21,000 support. However, this correction was stopped in its tracks around the $22,000 level after the benchmark cryptocurrency came into contact with the pivot top at $21,700.
The flagship cryptocurrency appears to be preparing for a launch to the $23,000 zone once again, where traders will likely push for a retest of the $25,000 critical mark. How do you foresee BTC playing out this week?
BTC Statistics Data
BTC Current Price: $21,900
BTC Market Cap: $420B
BTC Circulating Supply: 19.2M
BTC Total Supply: 21M
BTC Market Ranking: #1
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Disclaimer
This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.