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The indicator of dynamic average values of the hash rate and complexity of bitcoin mining pointed to the achievement of the price “bottom” for cryptocurrency No. 1.
While the price of bitcoin shows a downward correction compared to its recent values, the Hash Ribbons market indicator, which is based on the dynamic average values of the hash rate and the complexity of bitcoin mining, indicates that the No. 1 cryptocurrency is gradually finding its price “bottom”.
Such a signal appears on this indicator for the first time since August last year, and it means that at present bitcoin mining is becoming increasingly attractive.
Until that time, the indicator was in bearish mode for 71 days, which became the third such period in the history of bitcoin in duration. This period was longer than the one observed in 2021, and only two days shorter than in 2018, when the price of bitcoin fell to 3.1 thousand dollars.
The end of the “bearish” phases on the Hash Ribbons indicator, which occurred in the second half of large cycles of the bitcoin market, that is, at least two years after the next halving, usually gave some of the most significant “bullish” signals for traders in the market, which was observed in 2012, 2015 and in the second half of 2018.
Meanwhile, the market is being depressed. pressure the expectation of a further increase in interest rates of the US Federal Reserve, which by the end of next year may reach 3.75% and only in 2024 will begin to decline to 3.4% – this is the consensus on the movement of interest rates in the US central bank itself at the moment.
It is also worth noting that in the history of bitcoin there has already been a partial recovery after a strong fall. So, in the first half of 2018, the price of bitcoin bounced from 6 thousand dollars to the level of 11.5 thousand dollars, but then again fell to 3.2 thousand dollars, only after that to show a significant rebound. A similar situation was also observed in 2019 and, it is possible, may be repeated this year, when before a new growth trajectory, the price of bitcoin will test very low values.
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