Bitcoin Nearing Bottom Amid Hash Price Decline
Key Takeaways
Bitcoin is showing signs of a potential recovery. The hash price suggests a possible price bottom, while the number of active addresses is increasing. Technical indicators such as the Stochastic RSI signal an oversold market condition. At the same time, the stock-to-flow ratio is rising, indicating increasing Bitcoin scarcity.
Hash Price as an Indicator of a Bottom Formation
Bitcoin’s hash price has declined, which historically has often coincided with a bottom formation in Bitcoin’s price. A low hash price means that miners earn less revenue per hash, which in the past has frequently signaled an upward price reversal.
Currently, Bitcoin is trading at $80,101.35, reflecting a 7.67% decline in the last 24 hours. If past patterns repeat, this could present a favorable opportunity for an accumulation phase.
On-Chain Data: Majority of Investors Remain Profitable
An analysis of Bitcoin addresses shows that 75.30% of circulating BTC is “in the money,” meaning they were purchased at a higher price than their current value. At the same time, 23.23% of addresses are “out of the money,” indicating that these investors are currently experiencing losses.
This distribution suggests that despite recent price declines, many investors remain in profit, which could strengthen confidence in the market.
Rising Network Activity as a Positive Signal
The number of active Bitcoin addresses has increased by 6.30% over the past seven days. This indicates growing network participation, which is often seen as a sign of increasing market stability.
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Additionally, the number of new addresses has risen by 26.04%, while the number of empty wallets has increased by 24.78%. This suggests that new market participants are accumulating or trading Bitcoin rather than liquidating their holdings.
Technical Analysis: Key Support Zones
Bitcoin is currently testing a critical support level at $80,216. If this area holds, a recovery could follow.
The Stochastic RSI stands at 2.23, indicating an oversold market condition. This could signal an impending price reversal. Furthermore, the Bollinger Bands are tightening, suggesting an upcoming period of increased volatility.
Stock-to-Flow Ratio: Scarcity is Increasing
Bitcoin’s stock-to-flow ratio has surged by 100% in the past 24 hours, now standing at 2.1152 million. This model measures the relationship between the existing supply and the annual production rate of new Bitcoins.
A rising stock-to-flow ratio indicates that supply is growing at a slower rate, which could support the price in the long term.
Our Assessment
Current data suggests that Bitcoin may be approaching a potential bottom. The low hash price, rising network activity, and high stock-to-flow ratio point to an impending recovery.
However, market conditions remain uncertain. If the support level at $80,216 does not hold, further declines could follow. Investors should closely monitor technical indicators and on-chain data to make informed decisions.
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $86,027.00 |
| 24h % | 7.87 % |
| 7d % | -10.74 % |
| 30d % | -18.21 % |
| 60d % | -6.85 % |
| 1y % | 40.65 % |
| Market Cap | $1,703,984,994,667.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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