Bitcoin Mining Complexity is Back above 100 EH/s
Bitcoin (BTC) is preparing for a return, according to analysts, which may lead to a replay of the historic bull market years of 2013 and 2017. As recent highs of $42,400 were reached on July 31, market perceptions swung back to an optimistic Bitcoin “supercycle.”
From mid-May, Bitcoin has been attempting to recover from the repercussions of the China miner outage, however last week’s price gains were higher than most expected. Instead of taking a significant reversal, BTC has maintained its ground, reflecting an appreciation of 23% percent in a week while writing this article.
What appeared near-impossible only seven days earlier is now the hot new thing among a growing number of analysts. “Bitcoin ended up making five green monthly candles in a succession and soared up tenfold in the second half of 2013,” stated Jeff Ross, founder and CEO of Vailshire Capital, in Twitter remarks Saturday.
BTC/USD, on the other hand, just broke over its 21-week exponential moving average, a “time-tested bull market signal,” according to analyst Rekt Capital. While Ross cautioned that such a forecast was “simply a bet,” he does have an increasing list of on-chain metrics to back him up.
After taking a U-turn at 83 exahashes per second (EH/s), the hash rate has risen beyond 100 EH/s, while mining complexity has seen its first upward realignment following the May price drop on Saturday. The change in mood is mirrored in investment decisions. Determined hodlers with next to no precedent of selling BTC are now in command at proportions never witnessed earlier and nonexistent since Bitcoin’s current all-time peak of $64,500 in April.
“History doesn’t repeat itself but it often rhymes” #bitcoin
A repeat would be a Q4 blow off top. New ATH’s into 2022 seem more likely. Super cycle/last cycle will depend on what happens in 2023 IMO. https://t.co/07Ryn3pcTf
— ChartsBTC (@ChartsBtc) July 31, 2021
With an adjoining graphic from Glassnode, Lex Moskovski, chief investment officer of Moskovski Capital, stated, “This is highly optimistic.” It demonstrated hodler belief that a growing portion of the BTC supply will become illiquid — that is, removed from the market. On the same evidence, another analyst William Clemente said, “Bitcoin’supply shock’ is currently nearing the point that originally valued Bitcoin at $53K.” “Consolidation after ten consecutive green days is understandable, but I’m still optimistic for the next few weeks.”
Amount of #Bitcoin held by the strongest holders has retraced the whole dump and surged to ATH.
This is very bullish. pic.twitter.com/1ZAuDu8ngp
— Lex Moskovski (@mskvsk) July 31, 2021
Illiquid Supply Ratio has taken yet another leg up.
Bitcoin “supply shock” is now at levels that previously priced Bitcoin at $53K.
Consolidation after 10 straight green days is very reasonable but still remain bullish over the coming weeks. pic.twitter.com/mwVHj4DmKA
— Will Clemente (@WClementeIII) July 31, 2021
Following a troubling three months of news and price action, #bitcoin went on to print five green monthly candles in a row and went up ~10x in the second half of 2013.
I still contend that 2021 will behave in similar fashion.
Just a guess. Do what you must with this information pic.twitter.com/5Pdh16OG82
— Dr. Jeff Ross (@VailshireCap) July 31, 2021
— Rekt Capital (@rektcapital) July 31, 2021