Bitcoin Price ‘Near a Bottom’ as Hash Price Lows Echo Pre-2021 Bull Run Patterns
Harvey Hunter is a Junior Content Creator at Cryptonews.com. With a background in Computer Science, IT, and Mathematics, he seamlessly transitioned from tech geek to crypto journalist.
Bitcoin hash price, when compared to BTC price action, seems to be pointing toward a Bitcoin bottom as it mirrors the conditions that preceded the 2021 breakout to new all-time highs.
In an August 30th Quicktake blog post, on-chain analytics platform CryptoQuant suggested that Bitcoin price action may be approaching a bottom.
CryptoQuant noted that Bitcoin’s hash price, which measures the revenue earned by miners per terahash per second, is conspicuously low.
This pattern is significant as it underscores a recurring relationship where “historically, lower Hash Price periods have coincided with Bitcoin price bottoms.” A notable example of this pattern occurred in 2020 following the COVID-19-induced cross-market crash.
During this time, Bitcoin’s price hit significant lows, coinciding with a sharp decline in hashprice. However, as the year progressed, especially after the halving event, Bitcoin’s price began a robust upward trajectory, culminating in a breakout to new all-time highs.
Miner behaviour seems to support a potential turnaround, as they seem to have started accumulating again after a long period of outflows, according to CryptoQuant data.
Miner reserves have recovered levels unseen since June, with notable pick-up since August 24th.
Earlier this month, CryptoQuant CEO Ki Young Ju highlighted a notable development in the US mining sector, suggesting that it is painting a picture of sustainability.
He pointed out that “miner capitulation is nearly over, with hash rate nearing all-time highs,” referencing the post-halving events captured by
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