The Bitcoin hashrate is again on the rise, undoubtedly a bullish development for the flagship crypto. This comes amid Bitcoin’s failure to break above the $60,000 resistance level, although that looks to change soon enough based on recent market analysis.
Bitcoin’s Hashrate Is Gaining Momentum
Data from the Hashrate Index shows that Bitcoin’s hashrate has notably increased in the last seven days. Based on the 7-day simple moving average (SMA), Bitcoin’s hashrate has increased from 629 EH/s recorded in August to 645 EX/s as of August 19. The surge occurred following the recent adjustment in the network’s difficulty, which dropped to 86.87 T.
The hashrate, which refers to the total computing power on the Bitcoin network, has continued to fluctuate, suggesting a lack of instability in the flagship crypto’s ecosystem. This has been mainly thanks to Bitcoin’s price action since the halving event, leading to miners’ capitulation, with many miners exiting the Bitcoin ecosystem.
However, the recent surge in the hashrate is undoubtedly a welcome development, especially amid Bitcoin’s tepid price action, with the flagship crypto failing to break above $60,000. The surge indicates that capitulation has cooled off and that miners are committing more computation resources to the Bitcoin network.
Crypto analysts like Willy Woo have also highlighted the importance of the hashrate, noting that Bitcoin’s price will only recover when the hashrate does. He also stated that Bitcoin would need to shed weak hands during this period, meaning that inefficient miners would need to go bankrupt or pack up their operations while others upgrade to more efficient hardware.
Such an occurrence will help provide much-needed stability in the Bitcoin ecosystem since that will ease the significant selling pressure that these miners have put on the flagship’s crypto price since the halving event.
Bitcoin Gearing Up For A Big Move To The Upside
Crypto analyst Titan of Crypto recently suggested that Bitcoin was gearing up for a massive move to the upside. This followed his analysis of Bitcoin’s price using the Ichimoku cloud indicator. As part of his analysis, he revealed that Bitcoin had just closed a candle above Tenkan and was now eyeing a Kijun reclaim.
This refers to the TK crossover, which indicates that a potential upward trend may be on the horizon for Bitcoin. Titan of Crypto also revealed that Bitcoin’s moving average convergence/divergence (MACD) indicator has crossed bullish on the daily timeframe, further strengthening the case that the flagship crypto will soon enjoy a rally to the upside.
Crypto analyst Trader Tardigrade also noted that Bitcoin’s MACD has shown double bullish signals on the chart. In line with this, he claimed that the flagship crypto has a high chance of pumping again soon.
At the time of writing, Bitcoin is trading at around $58,500, down almost 2% in the last 24 hours, according to data from CoinMarketCap.
Cover Image from DALL-E, chart from Tradingview