After incurring a sudden influx of buying pressure that sent Bitcoin’s price surging to highs of nearly $10,500, BTC has been unable to maintain its upwards momentum and has now retraced back towards its key support level at $10,000.
Bitcoin’s fundamental strength has remained strong in spite of this lackluster price action, which may be a more important metric to gauge which direction BTC is going to trend next over its near-term price action.
Bitcoin Hash Rate Surges as Price Ranges
At the time of writing, Bitcoin is trading up 2.8% at its current price of $10,190, which marks a decent surge from its daily lows of $9,900, but also marks a slight retrace from its daily highs of over $10,400.
This recent price action simple marks an extension of the narrowing trading range that Bitcoin has been caught in within the past couple of months, with BTC trading between the lower-$9,000 region and the upper-$10,000 region.
During this time, Bitcoin’s hash rate has been climbing significantly, and just set fresh all-time-highs earlier this week. Hash rate is a key indicator that elucidates the fundamental strength of Bitcoin, and its steady rise throughout 2019 signals that Bitcoin’s network is incredibly strong at the moment, in spite of its recent sideways price action.
Hodlonaut, a popular figure within the cryptocurrency industry, recent spoke about BTC’s hash rate in a recent tweet, explaining that it points to an underlying confidence in the cryptocurrency.
“The explosion of Bitcoin hashrate is under-reported imo. Last readjustment period (2016 blocks, or around 2 weeks) increased 10.38%. We are about half way through the current readjustment period, and on track for another 11.85% increase. Someone is confident…. Me too,” he said.
The explosion of Bitcoin hashrate is under-reported imo.
Last readjustment period (2016 blocks, or around 2 weeks) increased 10.38%.
We are about half way through the current readjustment period, and on track for another 11.85% increase.
Someone is confident….
— hodlonaut (@hodlonaut) September 18, 2019
BTC Hash Rate Shows Just How Far BTC Has Come Since Its Inception
Many investors and analysts point to BTC’s price as a sign of just how far it has come since its inception in 2009, but its hash rate may even be a more shocking glimpse into how much it has grown over the past decade.
Nic Carter, another popular figure within the crypto markets, explained in a recent tweet that there may not be any other processes in history that has grown at the same rate as BTC’s hash rate.
“Is there any process – bounded by physical constraints – that has grown at the pace of Bitcoin’s hashrate in the last decade? We’re talking 0 to 100 quintillion. It’s preposterous, even on a log chart,” he said while pointing to the below chart.
Is there any process – bounded by physical constraints – that has grown at the pace of Bitcoin's hashrate in the last decade? We're talking 0 to 100 quintillion. It's preposterous, even on a log chart pic.twitter.com/5e7ohqWlcC
— nic carter (@nic__carter) September 19, 2019
Regardless of whether or not Bitcoin is able to maintain its position in the lower-$10,000 region, its robust hash rate likely signals an underlying bullishness that may be reflected in BTC’s price sometime down the road.
Featured image from Shutterstock.