Bullish Signals: Bitcoin Hash Rate 7X Higher Than During Its All-Time High Price Period in 2017

bitcoin

Lujan Odera

Bitcoin’s hash rate spikes by 700% since BTC’s bullish trend in late 2017.

According to data provided on Blockchain.com, Bitcoin’s 7-day average hash rate is oscillating around 98,000,000 TH/s representing a seven times growth for the hashing power compared to Bitcoin’s bullish trend period in December 2017. Bitcoin’s hash rate is a measure of the power needed to mine Bitcoin blocks and keep the blockchain functional.

Bitcoin’s price however is lagging behind the impressive hash rate growth in the past 2 years – trading 55% lower than its all-time high price of $19,800 USD.

In the past 24 hours, BTC.com holds the largest hash rate pool share at 15.9% (close to 15 million TH/s); AntPool and Pooling – two public BTC mining pools – close out the top 3 mining hash rate polls with 15.8% and 13.4%  of the pool share respectively.

Bitcoin’s shared hash rate across mining pools

The spike in Bitcoin’s hash rate is a direct effect to the increasing number of miners trying to get their hands on BTC and the increased production of powerful ASIC miners. An increase in hash rate implies an increase in mining difficulty (as seen in the chart below) which is a good sign for the security of the blockchain.

Bitcoin mining difficulty increasing in a similar trend with the mining hash rate.

Upcoming developments on BTC mining

Bitcoin difficulty adjustment – which occurs every 2016 blocks (approx. 2 weeks) – is set to occur in the next 24 hours or so. The previous readjustment period saw over 10% increase in mining difficulty of Bitcoin showing increased confidence among miners to get their hands on BTC before the upcoming halving in 2020. According to one crypto trader, the market should be showing more enthusiasm given the upcoming difficulty adjustment may be even higher.

Increased difficulty coupled with a reduced supply of BTC, is a recipe for a massive bullish momentum after the halving. Currently, the price of BTC stands in the $8,200’s region with the daily charts forming a rectangular pattern that signals a possible reversal in price towards the $6,400 region before an explosion in price.

Images sourced from Blockchain.com

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