Bitcoin Price ‘Near a Bottom’ as Hash Price Lows Echo Pre-2021 Bull Run Patterns

The hash price lows echo levels seen in 2020 in the run-up to the meteoric 2021 bull run.

Bitcoin hash price, when compared to BTC price action, seems to be pointing toward a Bitcoin bottom as it mirrors the conditions that preceded the 2021 breakout to new all-time highs.

In an August 30th Quicktake blog post, on-chain analytics platform CryptoQuant suggested that Bitcoin price action may be approaching a bottom.

CryptoQuant noted that Bitcoin’s hash price, which measures the revenue earned by miners per terahash per second, is conspicuously low.

This pattern is significant as it underscores a recurring relationship where “historically, lower Hash Price periods have coincided with Bitcoin price bottoms.” A notable example of this pattern occurred in 2020 following the COVID-19-induced cross-market crash.

During this time, Bitcoin’s price hit significant lows, coinciding with a sharp decline in hashprice. However, as the year progressed, especially after the halving event, Bitcoin’s price began a robust upward trajectory, culminating in a breakout to new all-time highs.