Analysis: Divergence between Bitcoin price and hash rate could set the stage for a potential rally

BlockBeats news, September 21, CoinDesk reported that the difference between the price of Bitcoin and its hash rate, or the total computing power of the network, could lead to a rise in the price of the largest digital asset.

Historically, these divergences have only occurred a few times in the past three years. In some cases, the price of Bitcoin bottomed out during these events and then rebounded as the market caught up with the rising hash rate. The rise and fall of the hash rate of the Bitcoin network depends on how many miners' mining computers are online to verify transactions.

Consistent with this pattern, Bitcoin has shown signs of recovery, rising by about $9,000 since bottoming out on September 6. This divergence between the price of Bitcoin and its hash rate began to form in July and then continued until early September, when the network's computing power reached an all-time high of 693 EH/s on the seven-day moving average, and the price of Bitcoin was close to $54,000.