bitcoin (btc), after briefly reclaiming the $61,000 price mark yesterday, has now fallen below it and continues its downtrend as of today. Amidst this negative price action, the asset’s hash rate, a key metric that reflects miner profitability, has hit historically low levels.
According to a recent study bitcoin-Hash-Price-Indicating-the-Buy-Opportunity?utm_source=twitter&utm_medium=sns&utm_campaign=quicktake&utm_content=woominkyu” target=”_blank”>analysis
Understanding Hash Price and Its Relationship to Buying Opportunity
Woominkyu revealed in his analysis that the hash rate, which measures the ratio of bitcoin's price to the revenue miners generate per unit of computing power, has shown a consistent pattern. When this metric drops to lower levels, it often coincides with the lowest point of bitcoin's price.
<img src="https://technicalterrence.com/wp-content/uploads/2024/08/Analysts-say-now-is-the-time-to-accumulate-bitcoins-again.png" alt="bitcoin price and hash rate.” />
Woominkyu further shared a chart highlighting that the blue shaded sections of the chart represent periods when the hash rate fell, corresponding to times when the bitcoin price was at or near its lowest points.
Historical data suggests that these periods have been followed by significant price recoveries. Woominkyu believes that the current low hash rate could indicate that bitcoin is close to bottoming, presenting a potential buying opportunity for long-term investors.
<blockquote class="twitter-tweet”>
bitcoin Hash Price Lower Signaling a Buying Opportunity
“The highlighted sections on the chart indicate periods when the hash price fell to lower levels, corresponding to times when twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#bitcoin Prices were also at or near their lowest points.” – By twitter.com/Woo_Minkyu?ref_src=twsrc%5Etfw” target=”_blank”>@Woo_Minkyu
Link … image.twitter.com/ZPf0cSTnNN
— CryptoQuant.com (@cryptoquant_com) twitter.com/cryptoquant_com/status/1829438016999367007?ref_src=twsrc%5Etfw” target=”_blank”>August 30, 2024
Another analyst points to a bitcoin re-accumulation phase
Echoing Woominkyu's sentiment, another renowned cryptocurrency analyst known as Moustache shared twitter.com/el_crypto_prof/status/1829449714237845554?ref_src=twsrc%5Etfw” target=”_blank”>perspectives on the Puell Multiple, a metric used to evaluate bitcoin market cycles.
<img src="https://technicalterrence.com/wp-content/uploads/2024/08/Analysts-say-now-is-the-time-to-accumulate-bitcoins-again.jpeg" alt="bitcoin Puell Multiple.” />
The Puell Multiple, which compares bitcoin’s daily issuance to its historical average, is currently at a level that Moustache believes offers the second-best opportunity for “reaccumulation” since 2022.
In a post uploaded to x today, Moustache emphasized that bitcoin's current market position is comparable to previous significant periods in 2012, 2016 and 2020.
These were times when the market was ready for significant upward movements after a consolidation phase.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#bitcoin – The Multiple Puell
I'll say it right now: this is your second best chance after 2022 to build back up before the next wave begins.twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” target=”_blank”>$btc It is where it was in 2012, 2016 and 2020.
Although it may not seem like it, I think we have some incredibly exciting months ahead of us. image.twitter.com/lpVXQOXvtC
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 
(@el_crypto_prof) twitter.com/el_crypto_prof/status/1829449714237845554?ref_src=twsrc%5Etfw” target=”_blank”>August 30, 2024
Moustache suggested that, despite current sentiment, the coming months could bring “incredibly exciting” developments for bitcoin.
x/QlcQ3IUt/” alt=”bitcoin (btc) price chart on TradingView” />
Featured image created with DALL-E, chart by TradingView
<script async src="https://platform.twitter.com/widgets.js” charset=”utf-8″>
