Analysts are concerned about the coming bearish indicators for bitcoin.
Despite Bitcoin’s hash rate hitting an all-time high, a prominent player in the cryptocurrency business issues a warning about potential negative signs to look out for. Analyst Gigi Sullivan questions the generally held notion that a rise in Bitcoin’s hash rate is a bullish indication in a new research from CryptoQuant.
Past Patterns Predict Selloff Following Increase in Hash Rate
Sullivan supports his statements with historical data from 2021 and 2022, where charts demonstrate that a selloff always occurred after a new all-time high for Bitcoin’s hash rate. The study shows that following the 7 instances of this trend over the previous year, the average decline was 19.5%, with the smallest loss being 12.5% and the highest drop being 37%.
Expected Bitcoin Price Levels
According to the expert, Bitcoin might rise as high as $25,500 before falling to $18,400 and then dipping to an anticipated all-time low of $14,500. The $20,100 minimum peak price is the aim. According to the tendency, a price decline was observed nine days following the first all-time high in a cluster, according to Sullivan.
Various Points of View on the Market Performance of Bitcoin
The CEO of CryptoQuant, Ki Yung Ju, is among those who feel that Bitcoin has already entered a bullish period, according to a recent ZyCrypto analysis. This opposing viewpoint is situated against the background of the much anticipated FOMC meeting and interest rate decision, which is likely to have an effect on risk-on markets in the upcoming week.