After hovering in the lower $40k range for the last week of September, Bitcoin price finally got the boost it needed on the first of this month. The price increased from $43.2k to $48.4k. As a result, altcoins followed the following, and the global crypto market cap surpassed $2.1 trillion the same day.
BTC’s price, on the other hand, has stayed rangebound in the $47k-$48k range for the past 36 hours. It is now being determined if the token will consolidate or propel for the next leg up. Some fundamentals and metrics suggest that BTC is warming up for the next big spike.
In the months of May and June, the hash rate of Bitcoin plummeted to new lows. However, since July, things have begun to improve. The graph below shows how the hash rate has nearly doubled since its lows of 86 million TH/s.
When more miners compete to mine Bitcoin, the hash rate increases. During such periods, the coin’s price usually works as an enticing incentive for miners to mine more.
Even if a recovered hash rate has no effect on the price per se, it should be noted that miners are usually more profitable during such periods.
The hash ribbon is a long-term indication that appears on the Bitcoin chart to signify macro-bottoms. In the recent past, its forecasts have been fairly accurate. The most recent purchase signal appeared on the chart in August, when the price was around $30,000. Following that, the ribbon has only continued to rise, signaling that miners have returned to the Bitcoin network.
In August, the bullish cross on the ribbon was also confirmed. The previous time such a discrepancy occurred, BTC’s price increased by 230 percent. Bitcoin’s price would cross the $158,400 mark this time if it experienced a similar increase.
The aforementioned 6-digit valuation may appear improbable at this point, but it can’t be ruled out entirely. It should be remembered, however, that the value of BTC will not alter overnight. Because it took four months the last time, a six-digit valuation will only be possible in November and December this year.
What’s the Plan of Action Here on for BTC?
Bitcoin will have a Positive month in October. By the end of the year, if it passes, new records will have been established. At the time of writing, the Mayer Multiple had shown an interesting trend.
This indicator was made to look at the price of BTC in relation to its prior fluctuations. Whenever investors put money into Bitcoin when the price was below 2.4, they got a lot of money back. This metric’s value was 1.055 at the time of writing.
When BTC’s price has rallied in the past, the MM’s estimate has usually been above 1.5. As a result, it’s possible that Bitcoin’s ascent will only pick up momentum in October, with the real action coming after that.
Nonetheless, whenever BTC’s price has fallen into the negative range in the past, it has usually recovered back. However, in the past, the price has spent 1-2 months in the bullish zone before rising to the extension and overbought zone.
The bullish zone is currently enclosed inside the $50k to $77k price range. As a result, Bitcoin’s price often fluctuates in this range during the month of October. However, if other macro-factors fail to support the king-coin, it will be forced to spend more time in the negative zone. As a result, October will be the month in which Bitcoin’s fate is decided.