Analysts Say Now Is the Time to Re-Accumulate Bitcoin—Here’s Why
31 August 2024 - 7:30AM
NEWSBTC
Bitcoin (BTC), after briefly reclaiming the $61,000 price mark
yesterday has now fallen below it continuing its bearishness as of
today. Amid this negative price action, the asset’s hash price, a
key metric reflecting miners’ profitability, has reached
historically low levels. According to a recent analysis by
Woominkyu, a CryptoQuant analyst, this significant drop in hash
price might signal a prime buying opportunity for investors.
Related Reading: Bitcoin Reclaims $61,000: Key Levels To Watch For
Continuous Surge Understanding The Hash Price And Its Relation To
Buying Opportunity Woominkyu revealed in his analysis that the hash
price, which measures the relationship between Bitcoin’s price and
the revenue miners generate per unit of computational power, has
shown a consistent pattern. When this metric falls to lower levels,
it often coincides with Bitcoin’s price bottoming out. Woominkyu’s
further shared a chart highlighting that the blue-shaded sections
on the chart represent periods where the hash price dipped,
corresponding to times when Bitcoin’s price was at or near its
lowest points. The historical data suggests that these periods have
been followed by significant price recoveries. Woominkyu believes
that the current low hash price could indicate that Bitcoin is near
a bottom, presenting a potential buying opportunity for long-term
investors. Lowest Bitcoin Hash Price Indicating the Buy Opportunity
“The highlighted sections in the chart indicate periods where the
Hash Price dropped to lower levels, corresponding to times when
#Bitcoin prices were also at or near their lowest points.” – By
@Woo_Minkyu Link 👇… pic.twitter.com/ZPf0cSTnNN — CryptoQuant.com
(@cryptoquant_com) August 30, 2024 Another Analyst Points To
Re-Accumulation Bitcoin Phase Echoing Woominkyu’s sentiment,
another renowned crypto analyst known as Moustache shared insights
on the Puell Multiple, a metric used to assess Bitcoin’s market
cycles. The Puell Multiple, which compares the daily issuance of
Bitcoin to its historical average, is currently at a level that
Moustache believes offers the second-best “re-accumulation”
opportunity since 2022. In a post uploaded on X earlier today,
Moustache emphasized that Bitcoin’s current market position is
comparable to previous significant periods in 2012, 2016, and 2020.
Related Reading: Bitcoin’s Momentum at Risk? NVT Golden Cross Sends
Warning Signals These were times when the market was primed for
substantial upward movements following a phase of consolidation.
#Bitcoin – The Puell Multiple I call it here: This is your second
best chance after 2022 to re-accumulate before the next wave
starts.$BTC is where it was in 2012, 2016 and 2020. Even if it
doesn’t feel like it, I think we’ve some incredibly exciting months
ahead of us. pic.twitter.com/lpVXQOXvtC — 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲
(@el_crypto_prof) August 30, 2024 Moustache suggested that despite
the current sentiment, the next few months could bring “incredibly
exciting” developments for Bitcoin. Featured image created with
DALL-E, Chart from TradingView
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