Since the start of 2020, Bitcoin(BTC) rallied at around 10%. The price of BTC has almost halved its all-timehigh back in 2019, even though it has seen it with a temporary floor.
So, it’s no surprise why a lot ofcrypto analysts anticipate for another massive performance of BTC this 2020.
Before2020 has started, almosteveryone in the crypto space dreams for another BTC parabolic rally.
Earlier this month, Bitcoin bottomtends to reach the $6,400 level. Based on the Heiken Ashi Candles, which is aone-chart that allows the traders to predict future prices and see markettrends, the long-term price of BTC shows positive signs. In other words, thechart suggests that the price of Bitcoin tend to set higher values at hundredsof percentage.
Furthermore, it might be hard to assume everything as the Bitcoin has been trading on the various magnitude in the past ten years, but the Heiken Ashi Candles resulted to parabolic surges. As a result, Bitcoin gained thousands of percentage higher compared to previous years.
The signals are no yet completelyformed. Meaning, as it is still on January 17th, there are remaining two weeksbefore final results can be seen. On the other hand, many crypto analysts arealready looking forward to a short-term upside towards above $10,000. Accordingto them, bulls might find victory at the end of the month.
Over the first week of January, thehash rate of Bitcoin has been rising. In fact, it hit the record highs, whichwas speculated the reason behind the price rally.
If you are not aware, the higher hashrate for BTC means for the increased computing power of miners to the BTCnetwork. Then, it would result in a greater network decentralization level.
The network hash rate of Bitcoin wasformerly correlated with its price. According to some crypto analysts, theprice of Bitcoin allows the increase in hash rate. The said hash rate is consideredto be the BTC’s major price driver.
With a rising hash rate on BTC alongwith the much-awaited halving in May, the bull can have a market flag. Besides,the speculation on the rapid hash rate growth of BTC can possibly contribute tothe price rally.
On the other hand, there’s adifference between the cost of production and hash rate growth. The formerseems to be strongly correlated with the price of BTC. Based on the recentreport, the creation of new BTC cost averages at $6,300 per token.
If you remember, after the price ofBTC dropped under $4,000 before the end of 2019, some miners opt to turn offtheir machines. Others were forced to reassure the crypto market is not likelyto shut down.
So, this 2020, miners are about to betested. Not only that, many are still wondering whether or not the BTC couldpast the 4,000% rally.
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