Bitcoin’s hash rate is on the rise, hitting a new all-time high (ATH) on May 1, but this could be bad news for investors as it could lead to a stronger sell-off.
According to industry experts, this has been a pattern in the past, with Bitcoin hashrate hitting ATH causing the price to drop over the next 30 days. The only exception was the ATH recorded on March 23, which did not trigger any major pullbacks. However, experts point out that this ATH respects the previous limit on how high the price can go before falling sharply by no more than 10%.
Source: CryptoQuant
The latest ATH hash rate on May 1 pushed prices higher as usual, but experts warn that this could lead to a stronger decline reminiscent of the April/May 2022 price action.
According to past data, the downward price range is quite wide, between $19,500-25,000, and the most likely stop loss is around $22,700.
The news could cause concern among bitcoin investors, who have seen the cryptocurrency’s price fluctuate wildly in recent months. It is important to note that while the ATH hash rate is a useful indicator, it is not a guarantee of what will happen to the Bitcoin price.
Bitcoin prices are notoriously unpredictable and investors should always exercise caution and do research before making any investment decisions. It’s worth noting that Bitcoin’s price history shows that it tends to recover from price drops and go on to make new highs.
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according to Kyptos
