Bitcoin has once again incurred a massive amount of volatility that has made it increasingly unclear as to where BTC and the aggregated crypto markets are heading in the future. This volatility, which came about after a bullish move yesterday, may prove to be negative for the crypto if it is unable to find any strong support.
During times of great volatility and unclarity, analysts and traders alike often turn towards an asset’s fundamentals for insight into which direction it is heading next, and one strong fundamental factor may point to a continuation of BTC’s bullish momentum in the near-term.
Bitcoin Hashrate Incurs Fastest Growth in Its History
At the time of writing, Bitcoin is trading down marginally at its current price of $12,430, which is down significantly from its 24-hour highs of $13,000 that were set earlier this morning.
Today’s drop signals that BTC’s bulls are not yet ready to propel the cryptocurrency higher and it may require a longer period of consolidation before it once again begins its upwards journey back up towards its 2019 highs of $13,800.
Although today’s drop came as a surprise to most analysts and investors alike, it is important to note that Bitcoin still has incredibly strong fundamentals that will likely help lead it higher in the near-future.
One of these factors is BTC’s hashrate, which has recently incurred its fastest growth in the history of BTC, which is one robust fundamental factor that could lead the cryptocurrency significantly higher.
“The Bitcoin network hashrate has just recorded its fastest growth in history. Bitcoin’s total hashrate (on a 7-day moving average) has increased by 13.11 EH/S over the past 30 days – its fastest pace ever. What does this mean for the price of #Bitcoin?” Binance Research – the research arm of cryptocurrency exchange Binance – noted in a recent tweet.
All Eyes on BTC’s Monthly Close
Right now, analysts are closely watching to see how Bitcoin reacts to the downwards pressure it is currently facing, and it is critical that it ends July with a green monthly candle so that its bulls have time to regain their strength and propel it higher.
“$BTC Monthly: The monthly close is still a few weeks away but you can’t deny the bullishness if Bitcoin can close above the previous ATH close at $13,863. On high-time frames it will be clear skies with no price history resistance overhead, only support. Countdown to July 31st,” Josh Rager, a popular crypto analyst, explained in a recent tweet.
As the week and month continue on and Bitcoin reacts to the volatility it is currently incurring, it is highly likely that investors and analysts alike will soon understand whether or not BTC will soon surge back up to its all-time-highs.