The BTC hash rate reached an absolute maximum once again. According to the data of the Blockchain.com website, the indicator updated the historical maximum at the level of 136.2 EH/s. The previous ATH was fixed at 123 EH/s in January 2020.
Note, well-known TV presenter and trader Max Keiser introduced the theory. He claims that the hash rate growth wave is a signal of further positive BTC rate movement. In many cases, the specialist’s assumptions are valid.
Is BTC Getting Ready For Growth?
The week starts for the cryptocurrency market with a positive movement. At the press-time the first coin is trading at $ 8,718, adding + 1.37% to the cost per day. All assets in TOP-10 table in terms of capitalization ratings demonstrate growth, except for XRP, Litecoin, and Tezos.
Despite a slight price increase in most cryptocurrencies, the BTC rate is still in lateral movement. The local maximum value of the cryptocurrency was recorded on February 13 at the level of $ 10,432.
CEO Binance Changpeng Zhao quickly reminded the participants of the crypto community about the previous achievements of the asset, against the backdrop of the BTC wave of decline from previously achieved values. The specialist drew attention to the fact that Bitcoin was created after the financial crisis. Over the past 10 years, during the periods of relative stability of classical financial instruments, the asset has grown by more than 9,000,000%.
“How do you think it will do in the next financial crisis?” Changpeng Zhao summed up, hinting at the growth prospects of the cryptocurrency amid the destabilization of classic assets.
#Bitcoin was created after the last financial crisis. It has risen 9,000,000% in the last 10 years when fiat and stocks were strong. How do you think it will do in the next financial crisis?
— CZ Binance 🔶🔶🔶 (@cz_binance) March 1, 2020
Another popular cryptocurrency community participant under the nickname PlanB recalled the possible positive impact of the upcoming halving on the behavior of the BTC rate once again. The expert’s forecast is based on the S2F model, which was recently criticized by Ethereum cofounder Vitalik Buterin.
Remember last month's forecast that #bitcoin will stay above $8200? So far so good and .. the indicator just flipped to $8600 (March close). Risky with btc now at $8475, but I like to share it as out-of-sample test. Note this is totally different from S2F!https://t.co/1Kc36h6i03 pic.twitter.com/GG7mkaynwo
— PlanB (@100trillionUSD) March 1, 2020
Meanwhile, specialists from the US Federal Reserve System (FED) were less optimistic about the possibilities of Bitcoin’s growth. The study of the regulator showed that BTC cannot be considered as a tool for maintaining value during periods of rate cuts. As evidence, experts presented the reaction of Bitcoin to such actions by the Fed.
Bitcoin Short Term Forecast
Although the rate of decline in BTC prices has slowed. Over the weekend, quotes fell to $ 8,500, but there was no further acceleration.
Technically, movement is now taking place in a downward channel at volumes below their average values. In the event of a confident breakdown of the upper border of the trading channel, the probability of a trend change will increase significantly. However, BTC/USD needs to gain above the level of $ 9,000.
For conservative traders, the best solution would be to wait for a breakdown of $ 9,500-$ 9,600. We can consider this as a signal for continued growth. At the current moment, the correction may become more complicated and in the case of a stronger decrease, you will have to revise the previous levels.