Three Reasons Bitcoin Is Oversold Like Crazy Right Now (Opinion)
Bitcoin price retested the $18K support level Friday. That’s the third time in a week, with the crypto failing to pass resistance at $19.5K twice on the 5-day chart.
The crypto exchange price for a piece of the world’s original blockchain currency continues to consolidate at around $19K. That has been the trend for Bitcoin (BTC) over the month of September.
Over the six-month chart, year-to-date, and one-year view, bitcoin is deeply in the red. It’s the third prolonged capitulation in the crypto’s history, called a “crypto winter” by longtime traders.
Yet despite the deep freeze on prices, here are three reasons why Bitcoin is oversold like crazy right now.
The Bitcoin Hash Rate Hit All-Time High in September
Bearing in mind that exchange market prices are ultimately seeking to evaluate fundamentals, the network’s fundamentals are strong. In fact, the Bitcoin network’s hash rate marked a new all-time high in September.
On Sept 17, the hash rate rose to 234m TH/s (terahashes per second). Furthermore, that represents an increase of 55% over Bitcoin’s July hash rate.
A fundamental analysis of the bitcoin price might take into account the price of the amount of network infrastructure at work. The hash rate is a trusty and handy measure of that. With the price down so far for the year as the hash rate hits new records, BTC looks very oversold.
Bitcoin Miners Keep Adding ASIC Units and Mining Facilities
Meanwhile, even with the hash rate sky high, miners keep building and building onto the infrastructure. That’s incredibly bullish for bitcoin’s long-term prospects.
For example, CleanSpark Inc., a Nevada-based bitcoin miner, recently spent $33 million to acquire a turnkey mining facility in Sandersville, Georgia. The publicly traded company (NASDAQ:CLSK) has guided investors to expect it to continue adding ASIC miners to its fleet through 2024.
Institutional Investors Aren’t backing Down
Another strong leading indicator for a future bull run is the avid and growing interest from institutional investors. Nasdaq, for instance, is one of the latest Wall Street incumbents to begin rolling out a custody service for institutional investors to get into crypto.
Institutional money is both smart and conservative. As the more risk-averse hedge funds, big banks, and traditional finance companies lean into crypto services, investors will notice the long-term bullish trend.
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OhNoRipple via https://www.ohnocrypto.com/ @Wesley Messamore, @Khareem Sudlow