After trading in the lower $ 40,000 range for the last week of September, Bitcoin price received the expected boost on the first day of that month. BTC rose from $ 43.2,000 to $ 48.4,000. In fact, altcoins followed suit, with total crypto market cap topping $ 2.1 trillion on the same day.
However, the price has fluctuated in the $ 47,000 to $ 48,000 range for the past 36 hours. So will this indecision persist, or will Bitcoin continue to move forward?
Higher high or lower low?
Well, a look at the ground state of Bitcoin should give us a clear idea of what will happen next. Bitcoin’s hash rate saw one of its deepest drops between May and June. However, things have improved since July. The graph below shows that the hash rate has gone downhill, almost doubling from the low of 86 million TH / s.
The hashrate increases as more miners compete to mine Bitcoin. Coin prices during such periods are often an attractive incentive for miners to mine more.
While hashrate recovery has no impact on price, it should be noted that miners are often in a more profitable situation during such times. Hence, the expectations of the miners who sell make no sense. In fact, a Puell multiple less than 2 supports this view at the time of writing.
The hash band is basically a long term signal that is used to indicate macro lows on the Bitcoin chart. His predictions have been fairly accurate in the recent past. The latest buy signal is forecast on the chart in August when the price is in the $ 30,000 line. The graphic below shows that the ribbon hash is trending straight up, showing the miners’ connection to the Bitcoin network.
In addition, a bullish crossover was confirmed in the hash ribbon in August. Last time the BTC price increased 230%. In a similar rally, Bitcoin price would break the $ 158,400 mark around this time.
Well, the 6 digit valuation mentioned above sounds too far-fetched now, but it’s impossible to remove it from the equation. It should be noted, however, that ratings won’t change overnight. The last one took about 4 months, and so the 6-digit rating should come up between November and December of this year.
What about October?
October is going to be pretty tough for Bitcoin. If successful, new record values will be set by the end of the year. In fact, the Mayer Multiple (MM) has shown an interesting trend at the time of writing.
This indicator was created to analyze the price of BTC in relation to previous movements. Whenever the indicator is below 2.4, Bitcoin investors are rewarded with high profits. At the time of writing, the index stands at 1,055.
In the past, whenever the BTC price went up, the MM was mostly above 1.5. Hence, it can be said that the rally of Bitcoin will only increase slightly in October and that the actual measures will follow thereafter.
In addition, the MM analysis can also identify the possibility of a trend reversal. The chart attached below shows that the Bitcoin price is currently in a bearish territory. In particular, it has so far attempted to break into a bullish zone but has been refused.
Anytime BTC price slips into a falling range before that point, it usually does not recover. However, the price spent 1-2 months in the bullish zone before climbing into the expansion and overbought zones in the past.
The bullish territory is currently between $ 50,000 and $ 77,000. Therefore, Bitcoin price will fluctuate in this area in October. However, if other macro factors don’t support him, he will spend more time in the bearish zone. Hence, October will be the month that will really decide the fate of Bitcoin.
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According to Ambcrypto