Bitcoin miners are facing a notable drop in profitability, with hash prices reaching their lowest levels. This decline in hash price could be hinting at a promising buying opportunity for Bitcoin investors. Recent data from CryptoQuant suggests that periods of low hash prices often align with Bitcoin prices approaching their lowest points, suggesting a possible bottom.
Bitcoin Hash Price Hints Buying Signal
The chart presented by CryptoQuant’s lead verified author, Woominkyu highlights the correlation between Bitcoin’s price and hash price. Hash price reflects how much profit miners make per unit of computational work.
Currently, Bitcoin’s hash price is at a notably low level which is at 587.09M, down from 703.79M yesterday high.
Historically, periods of lower hash prices have often matched times when Bitcoin prices hit their lows. This pattern suggests that when hash prices drop significantly, Bitcoin’s price might also be nearing a bottom.
Meanwhile, Woominkyu suggests that suggests that low hash prices often hint at a price recovery. If Bitcoin follows this pattern, this could offer a buying opportunity before a potential price increase.
40,000 BTC Leaves Exchanges
Meanwhile, prominent crypto chart analyst Ali Martinez, noted that major players have taken advantage of the recent dip in Bitcoin’s price. As on-chain data reveals a substantial drop of 40,000 BTC from the exchange supply in the past 48 hours. This is equivalent to about $2.4 billion, indicating a notable shift in market sentiment.
This trend shows that big investors are taking their Bitcoin off exchanges, likely because they expect the price to go up. This suggests they’re confident in Bitcoin’s future and plan to hold their investments.
Bitcoin Price Analysis
Adding to the optimism, analysts suggest that the TD Sequential indicator on Bitcoin’s 12-hour chart has generated a buy signal.
Meanwhile, If Bitcoin’s price finds support at around $58,783 and closes above $62,042, then Bitcoin could rise by 5.5% to revisit its daily resistance level at $65,379. As of now, BTC is trading at $59,316 reflecting a 0.46% drop in the last 24 hours with a market cap of 1.17 trillion.
