Bitcoin network hashrate correlation with Bitcoin price action
|- Bitcoin network hashrate hit an all-time high of 108.5 million TH/s on September 26.
- The correlation between Bitcoin price action and the network hashrate cannot be ignored.
Bitcoin is taking advantage of the high congestion of buyers at $8,000 to push for correction above $8,200. Besides, the target in the short-term is $8,400. Trading above $8,800 will need a catalyst aided by a healthy technical picture.
Bitcoin hashrate is used to monitor the mining activities within the network. The current hashrate data clearly shows that the hashrate is up a whopping 700% from the levels corresponding to the parabolic rise in December 2017 when Bitcoin exchanged hands almost at $20,000.
As mentioned, Bitcoin’s hashrate is used to monitor the levels of mining activities. It is also interpreted to show the commitment and belief of the miners in the ability of the price to go higher. However, that very notion of the price increasing with increasing hashrate has been disputed by other experts who believe in the vice versa.
In the chart, it can be observed that the mining community reacted in tandem with the investing community in the period of May to June 2019. This saw a significant increase in price, at the same time, the following weeks saw a remarkable increase in the hashrate. The hashrate finally hit an all-time high of 108.5 million TH/s on September 26.
While that very trend could be interpreted as a reaction move by the miners to a bullish market, it could also form the basis of an incoming upward correction in the price of Bitcoin. This is because higher price levels mean better profits for miners. At the time of writing the hashrate is dancing at 100 million TH/s. If the minders continue increasing the mining activities based on an impeding rally, Bitcoin price could eventually set for levels above $9,000 in the coming weeks.
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