Bitcoin (BTC) hasn’t done too hot over the past few months, plunging some 50% since the June top of $14,000. The selling has stopped over the past few weeks, with the price of the leading cryptocurrency flatlining in the low-$7,000s, leading some to suggest that another leg lower is possible.
But it seems that the cryptocurrency and the ecosystem surrounding it want to start off 2020 with a bang.
As noted by digital asset manager Charles Edwards, Blockchain.com, a cryptocurrency information and wallet service, found that Bitcoin’s hash rate — the measure of computational power processing BTC transactions — hit a new all-time high on the 1st day of 2020. The all-time high, 119 exahashes per second, or 119 with 18 zeroes after it.
Bitcoin starting 2020 with a BANG.
Hash Rate hit a new all time high on 1/1/2020: 119M TH/s.
Finally broke above the last ATH set more than 2 months ago in October.
Bitcoin Network stronger than ever before 💪
Happy New Year! 🍾 pic.twitter.com/c0dfvewXfy
— Charles Edwards (@caprioleio) January 2, 2020
This surge in the hash rate breaks the previous all-time high set more than two months ago in October, meaning that Bitcoin’s network is now stronger than ever before, marking an amazing start to 2020.
Indeed, as further pointed out by cryptocurrency trader The Moon, BTC’s hash rate is eight times higher than it was back during the $20,000 top of 2017, implying to him that the price of the leading cryptocurrency is “about to explode SOON!”
The #Bitcoin hashrate has hit a new all time high of 119,354,000 Th/s.
This is 8x what the hashrate was back in 2017 at the $20,000 top.
The Bitcoin fundamentals tell me that the #BTC price is about to explode SOON! pic.twitter.com/Mzk4XllKQS
— The Moon 🌙 (@TheMoonCarl) January 4, 2020
Why It’s Bullish for Bitcoin
So what does this mean for Bitcoin’s price outlook? Why does the growing hash rate indicate that a price explosion (to the upside) is likely on the horizon?
Well, the uptick in hash rate confirms that “miner capitulation,” which is when miners sell their BTC en-masse to keep their operations afloat, has ended and recovery has started.
According to the Hash Ribbons, an indicator tracking instances of miner capitulation, Bitcoin’s booming hash rate is signaling that now is a great time to buy BTC for the long run. While this may sound extremely arbitrary, “buy” signals printed by the Hash Ribbons have only taken place 10 times before in BTC’s history, preceding uptrends of thousands of percent.
Just look to the chart below, which shows that Hash Ribbon “buy” signals always led to an “average gain-to-cycle-peak of +5000%” in previous cryptocurrency market cycles.
BTC rallying by 5,000% from here, for some perspective, will mean that BTC will have a valuation close to a jaw-dropping $400,000 apiece.
Hash Ribbons Buy confirmed.
This is just the 10th time these conditions have been met for #Bitcoin.
It is highly likely we never see $BTC under $6000 ever again.
All other occasions saw an average gain-to-cycle-peak of +5000%.
Now is the period to Buy Bitcoin and never sell. pic.twitter.com/hSH9BtRhsj
— Charles Edwards (@caprioleio) December 28, 2019
Featured Image from Unsplash