The Bitcoin hash price, a metric measuring miner revenue per terahash or computing power, has fallen to its lowest level ever. According to recent data, this is a sign of 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 hash price corresponded with BTC bottoms; hence, based on historical data, lower hash level periods have occurred simultaneously with BTC price bottoms.
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 rallies.
At the time of writing, the leading crypto asset was in the red after falling from $61,000 to $59,400 in the past 24 hours. Bitcoin had also dropped by more than 8% in the past seven days from the $64,700 level. Woominkyu’s analysis suggests that BTC could skyrocket in the coming weeks, further triggered by macroeconomic events.
An Upcoming BTC Rally?
Two weeks ago, CryptoPotato reported that the Bitcoin hash price had plunged to a record low of $0.038 per TH/s from the $0.05 per TH/s level recorded shortly after the halving in April. The decline coincided with a miner capitulation and a surge in Bitcoin hash rate.
A higher Bitcoin hash rate signals 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 portions of their holdings and slashed their reserves to remain afloat. Unfortunately, this cohort of market participants incurred massive losses in their sales because BTC declined to $49,000 amid the macroeconomic crisis stemming from the Japanese yen fall.
Interestingly, historical data indicates that miner capitulation events and higher miner outflows are usually seen near BTC price bottoms in bull markets. This buttresses Woominkyu’s prediction that the crypto market could witness a bitcoin rally soon.
