Bitcoin hash rate hits new high despite sideways price movements

The price of Bitcoin has been moving sideways for the past week, fluctuating between $40,000 and $38,000. Many investors are now afraid of entering the market as a result, which is clearly shown by the Bitcoin Fear and Greed Index. On-chain metrics for the top cryptocurrency however show that the network is recording serious growth behind the scene.

Data from Glassnode shows that one of the key network metrics, hash rate, is on a sharp increase in spite of the price uncertainties. Hash rate is a major indicator of Bitcoin network growth as it shows that there are more miners joining and securing the network. This is usually a good sign, something that should give investors hope.

Price follows the hash rate 

Throughout the history of Bitcoin, one of the leading indicators of potential price rallies is the hash rate. The price of the asset has always followed the direction of the hash rate, which means that a price rally is underway as the hash rate hits a new high.

Similarly, analysts believe that Bitcoin is about to see “massive” volatility as the asset has been in consolidation for a long time. This is another positive sign that a price rally may be underway even though it may take some time as the current trend suggests a further drop is possible. 

Bitcoin may hit 55k in the coming weeks

Even though investors are gripped with fear because of Bitcoin’s dwindling price, analysts see a sign of hope. One of such analysts, Altcoin Sherpa, says he expects the price to hit $55,000 as early as in a few weeks. In his opinion, the market is still largely in a bullish trend in the long term. 

Meanwhile, the price of Bitcoin is still dropping and could be heading to lower prices where it will find support before a bounce. Most of the top cryptocurrencies are following in its footsteps and have also turned red as the bearish trend continues.

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