Bitcoin [BTC]: Why a hashrate hike will favor the bears

ambcrypto.com:

A significant drop in Bitcoin’s [BTC] price could be imminent if the hashrate reaches another All-Time High (ATH), a CryptoQuant analystrevealed on 23 February. Analyst Gigisulivan, who is also a macroeconomic specialist, opined that the 16 February ATH only gave a warning sign. Moreover, a repeat of the occurrence could cause a catastrophic outcome for BTC.

Read Bitcoin’s [BTC] Price Prediction 2023-2024

Bitcoin’s hashrate is the computational power used to mine and process BTC transactions on the Proof-of-Work (PoW) blockchain. On 26 January, Gigisulivan had put out a publication explaining the hashrate’s effect on the coin’s price. 

He had initially explained that investor anticipation towards bullishness in the case of an hashrate ATH was a sham. Maintaining his stance, the analyst gave examples of occasions where the metric hike resulted in the king coin’s value decline.

Source: CryptoQuant

As per the current state, Gigisulivan pointed out that BTC was in a critical state since the ATH recorded seven days ago. The on-chain analyst mentioned the state of the 200-weekly Moving Average (MA), and Bitcoin’s correlation with the stock market as reasons why a price fall could happen. He noted,

“New Hashrate ATH from 16th of Feb, comes at a critical junction for Bitcoin, coming off 200 Weekly MA and its first weekly deathcross, with stock market weakening this all adds up to a bearish sentiment gaining strength.”

Besides that, Tether’s [USDT] massive dominance over the past few days made an additional case for bears. Recall that the proscription of Binance USD [BUSD]  and USDC’s likely probe had propelled many investors to choose USDT as their preferred stablecoin.

For Gigisulivan, this supremacy could drive BTC