Bitcoin hashprice slump echoes March 2020 BTC price launch zone
2024.08.30 07:23
Bitcoin (BTC) is printing a fresh “buy opportunity” as miners face ongoing profitability struggles.
In one of its Quicktake blog posts on Aug. 30, onchain analytics platform CryptoQuant suggests that BTC price action is already near long-term lows.
Hashprice comparison hints BTC price “near a bottom”
Long-term Bitcoin metrics continue to buoy the bullish narrative this month — despite both miners and hodlers getting squeezed.
The former camp still faces post-halving profit hurdles, and the latest data shows that their hashprice could hardly be any less advantageous.
Designed to measure miner costs on a per terahash basis, hashprice is currently conspicuously low. CryptoQuant shows that in the past, price lows have emerged in step — but with a clear breakout later.
“The highlighted sections in the chart (blue boxes) indicate periods where the Hash Price dropped to lower levels, corresponding to times when Bitcoin prices were also at or near their lowest points,” contributor Woo Mink-yu explained alongside an illustrative chart.
“Historically, these lower Hash Price periods have coincided with Bitcoin price bottoms, suggesting that the current low Hash Price might indicate that Bitcoin’s price is near a bottom as well.”
BTC/USD vs. Bitcoin hashprice (screenshot). Source: CryptoQuant
The last similar period occurred after the 2020 COVID-19 cross-market crash and continued through that year’s halving event.
Bitcoin miners return to accumulation
Earlier, Cointelegraph reported on outflows from known miner wallets cooling through the month of July.
Related: Bitcoin mining CEO eyes hashrate contracts to offset rising costs
In recent days, CryptoQuant data confirms, their BTC reserve balance has in fact increased, and currently stands at 1,815,832 BTC.
Bitcoin miner wallet reserves. Source: CryptoQuant
This week, mining difficulty increased by an anticipated 3%, bringing the metric back within an inch of all-time highs of 90.66 trillion, per monitoring resource BTC.com.
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Earlier this month, CryptoQuant CEO Ki Young Ju suggested that the overall picture being painted within the United States mining sector was one of sustainability.
“Miner capitulation is nearly over, with hashrate nearing ATH,” he wrote on X, referring to post-halving events as captured by the Hash Ribbons indicator.
“U.S. mining costs are ~$43K per BTC, so hashrate likely stable unless prices dip below this.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
