Veteran Analyst Says “I Expect a Rally in Bitcoin”, Explains Why
The post Veteran Analyst Says “I Expect a Rally in Bitcoin”, Explains Why appeared on BitcoinEthereumNews.com.
Cryptocurrency analyst James Van Straten has shared his views on Bitcoin’s (BTC) price movements, arguing that it points to a potential rally driven by the divergence between the price and the hashrate, the total processing power of the network. According to Van Straten, such divergences have historically signaled a market recovery, with Bitcoin often rallying by catching up to the rising hashrate after prices hit a local bottom. “Historically, these divergences have only occurred a few times in the last three years,” Van Straten said. “In some cases, Bitcoin price has reached a local bottom during these events, followed by a rally as the market caught up with the rising hash rate.” Consistent with this trend, Bitcoin has rebounded from its local low of $54,000 on September 6, gaining nearly $9,000, or 15%. The divergence between Bitcoin’s price and hashrate began in July and continued into early September, when the network’s computing power reached an all-time high of 693 exahashes per second (EH/s) on a seven-day moving average. Meanwhile, Bitcoin’s price has stagnated around $54,000. One of the key factors behind the increase in hashrate is the increased activity of publicly traded mining companies. Before Bitcoin’s halving, a process that cuts mining rewards in half, hashrate peaked at 650 EH/s, but fell to 550 EH/s in June as less efficient miners exited the market due to increased competition. However, well-capitalized public mining firms have increased their activity, bringing the hashrate back to pre-halving levels. According to TheMinerMag, public miners currently hold around 23% of the total Bitcoin production market share, the highest share since January 2023. Van Straten expects this trend to continue and for these miners to take a larger share of the network’s hashrate as they attempt to remain profitable post-split. While September has historically been a bearish…
Filed under: News - @ September 21, 2024 12:21 pm