Bitcoin (BTC) is currently heading towards a new network record when the hash rate is very close to the three-digit number. However, precisely because the Bitcoin price has been volatile for days and weeks, the Bitcoin hash rate is showing signs of decline. The leading cryptocurrency in this market sometimes increased to $8,000, falling to $ 6,500.
Bitcoin Hashrate Decreases, where will BTC price go?
Bitcoin price has not been able to sustain the momentum since it dropped to $ 6,500. The indicators also show bulls do not currently have significant strength. And the crypto’s recent rejection at the upper- $ 7,000 region that sparked this latest sell-off seems to confirm this.
Moreover, Bitcoin’s downward momentum has come about concurrently with a drop in its hash rate. It may further confirm the underlying weakness that BTC’s recent price action points to.
At the end of October, just before Bitcoin’s price climbed to $ 10,600, the Bitcoin hash rate reached an all-time high of 114 million tera-hashes per second. Meanwhile, when the price dropped, Bitcoin’s hash rate also dropped to 81 million tera-hashes per second.
Source: Blockchain.com
Hashrate is an index used to measure the general computing power of computers when processing Bitcoin algorithms. The higher this index is, the more secure and profitable the Bitcoin network is. Hashrate experienced a recession in the second half of 2018, before skyrocketing back in January this year. Three months after the rally, Bitcoin’s price has risen sharply from a bottom of $ 3,500 to a high of $ 13,800 in the first half of 2019. This is considered a spectacular return of the largest cryptocurrency in the market.
HornHairs, a famous cryptocurrency analyst on Twitter, said:
1W chart looked respectable earlier in the weekend at $7.8k. After morphing & looking to close below the swing lows at $7.3k it looks a lot worse. We’ll see how it closes in a few hours but with a break down on the 4H market structure shorts will be favored this week. pic.twitter.com/nG6xMDyRwc
— HornHairs ? (@CryptoHornHairs) December 1, 2019
How BTC responds to this crucial support level will likely offer significant insights into where its price will head in the coming weeks.
The upcoming halving will not impact Bitcoin prices as strongly as expected
In a December 1 tweet, Jason Williams, co-founder of Morgan Creek Digital digital asset fund, said the halving event in 2020 might not create as many price moves on Bitcoin as expected.
Unpopular Opinion –
Bitcoin halving in May 2020 won’t do anything to the price. It will be a non-event.
— Jason A. Williams ? (@JWilliamsFstmed) December 1, 2019
Before that, there were many different opinions about the impact of this event. Willy Woo, in the past two weeks, said that the current price of Bitcoin is quite in contrast to the previous two breakthroughs. He thought this time would be an exception. Jihan Wu, the founder of cryptocurrency mining giant Bitmain, has the same opinion as Williams.
NEVER gone into a halvening in BEARISH price action, miners already capitulating adding sell volume. Historically we front run with a BULLISH setup, miner capitulating only after halvening when revenues are slashed. This is a unique setup. Quite bearish leading up to the event. pic.twitter.com/20748Zv8aQ
— Willy Woo (@woonomic) November 18, 2019
However, the view on the event also has mixed arguments. Anthony Pompliano, the co-founder of Morgan Creek Digital, a Bitcoin advocate, said that the current price is still unaffected by the upcoming halving event.
The Bitcoin halving is not priced in.
— Pomp ? (@APompliano) November 10, 2019
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