While investors are scanning the horizons for a ray of hope in the wake of Bitcoin’s steep crash, Cryptoquant founder has seen a silver lining in the dark cloud. He points to rising hash rates and frenetic miner activity as reasons for a potential rally in Bitcoin price.
Hashrates Continue To Rise Amid Falling Bitcoin Price
As February came to a close, Bitcoin (BTC) fell to $85,000 from its previous highs, shedding 10% of its value. While investors groan under the dip, Cryptoquant founder Ki Young Ju has expressed bullishness, pointing to on-chain data.
Young Ju says Bitcoin price still shows promise for a rally in the coming weeks, capable of surpassing its previous highs. He hinges his argument on rising investment in network security and the soaring number of Bitcoin miners.
“When investment in its (Bitcoin) network security stops, it’s likely absorbed enough capital,” said Ju. “That’s the time to sell.”
At the moment, hash rates have been rising steadily to reach an all-time high of 936.64 EH/s. Onchain data indicates a correlation between Bitcoin price, hashrates, and the number of miners securing the network.
Ju argues that despite the correction, mining rigs are still climbing toward the 5 million mark. However, investors have their eyes on the charts for indications of a plateau to begin a mass selloff.
“FYI, investment in the Bitcoin network has never stopped over the past 16 years,” said Ju.
Dipping Prices Paint A Sorry Picture For Bitcoin
While hashrates indicate positive sentiments for the top cryptocurrency, recent events present a grim outlook for investors. Reports of 59,000 Bitcoin options expiring with a value of $4.68 billion have put a dent in near-term asset price reversal.
Furthermore, Bitcoin ETF outflows reached $3.5 billion in February but analysts are unsure if March will lead to a trend reversal. Hardliners are making plays to buy the dip, eyeing a raft of positive announcements from the White House to trigger a rally.
The post CryptoQuant Founder Says Bitcoin Price Will Continue To Climb, Here’s Why appeared first on CoinGape.
