Bitcoin on the verge of a strong growth and here’s why
|- BTC/USD stays below critical $4,000
- Bitcoin’s hash rate has been growing steadily, creating pre-conditions for the price growth.
Bitcoin (BTC) has been on the rise during early Asian hours on Wednesday. The coin recovered from the channel support at $3,900 though it is still capped by $4,000. At the time of writing, BTC/USD is changing hands at $3,975, over 2% higher from this time on Tuesday.
Looking technically, BTC/USD smashed above all intraday SMA levels (1-hour chart). This development has improved the short-term picture. However, we still need to see a sustainable move above $4,000 handle to claim that the recovery is in place. Once it happens, the upside may be extended towards the last week’s high at $4,057 and $4,187, which is the highest level of February.
Hash rate is on the rise
Meanwhile, Bitcoin’s hash rate has recovered significantly from the current lows, signalling that miners are building their capacity. According to a founding partner at Primitive Dovey Wan, climbing hash rate is a sign of increasing confidence on the part of Bitcoin miners.
“Hashrate for $ETH has dropped 50% since its ATH and sees no recovery. vs $BTC also once saw a drop for 50% but steadily climbed back up now it’s 80% (50E) of ATH (60E)… This is the most direct reflection of confidence from miners based on their expectation of that PoW coin,” she commented in her Twitter account.
BTC’s hash rate is sitting at 50 million TH/s form as low as 30 million TH/s in late-December 2018. Considering a traditionally positive correlation between the hash rate and the price movements, Bitcoin may be on the verge of an extended recovery.
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