Bitcoin (BTC) is printing new “buying opportunities” as miners face ongoing profitability issues.
On-chain analytics platform CryptoQuant suggested in one of their Quicktake blog posts on August 30 that BTC price action is already close to a long-term low.
Hashprice comparison suggests BTC price is “close to bottom”
Bitcoin’s long-term indicators continue to support a bullish outlook this month, despite the challenges facing both miners and holders.
Electronic Camp is still facing revenue issues after the halving, and according to the latest data, their hash price may not be very favorable.
The hashprice, designed to measure miner costs in terms of terahashes, is currently noticeably low. CryptoQuant shows that price declines have been gradual in the past, but have later been followed by clear breakthroughs.
Contributor Woo Min-kyu explains with an explanatory chart that “the highlighted portion (blue box) in the chart indicates a period where the hash price dropped to a lower level, which corresponds to a period when the Bitcoin price was at or near its lowest point.”
“Historically, these periods of low hash rates have coincided with Bitcoin price bottoms, and the current low hash rate suggests that Bitcoin price may also be nearing a bottom.”
The most recent similar period occurred following the COVID-19 market crash in 2020 and continued through that year’s halving.
Bitcoin Miners Are Back in the Accumulation
Cointelegraph previously reported that known miner wallet outflows had decreased during the month of July.
Related: Bitcoin Mining CEO Eyes Hashrate Contracts to Offset Rising Costs
According to recent CryptoQuant data, their BTC reserve balance has actually increased and currently stands at 1,815,832 BTC.
According to monitoring firm BTC.com, mining difficulty increased by 3% this week as expected, bringing it within an inch of its all-time high of 90.66 trillion.
Earlier this month, CryptoQuant CEO Kiyoung Joo suggested that the overall picture for the U.S. mining sector is shaping up to be sustainable.
He wrote on X that “miner capitulation is almost over as hashrate approaches ATH,” referring to the post-halving event captured by the Hash Ribbon metric.
“The cost of mining in the US is around $43,000 per BTC, so the hashrate is likely to remain stable unless the price falls below that.”
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