Bitcoin is the largest cryptocurrency by market cap in the world. However, during the last few days, the price of the token has been oscillating between support and resistance key areas. The main cause of volatility in the flagship crypto is the tapering policy of the Federal Reserve planning to increase the interest rates.
As a result, a considerable number of long positions have been liquidated, and it seems that more bad news is to follow. CryptoQuant recently shared an on-chain analysis of the hashrate for the Bitcoin network. According to the report, the hashrate contribution from node validators or miners has decreased dramatically recently.
The hashrate meter has been a good measure for crypto market analysts to find out the bearish or bullish development of the top coin. CryptoQuant on-chain analysis for last year’s hashrates shows a direct relationship with Bitcoin with the pricing of the top coin. It is worth mentioning that hashrate production indicates that miners are finding it profitable to keep working.
However, when the hashrate started to drop, it meant that miners stopped contributing since the operation was no longer profitable for them. The miners are always competing on the network to generate the maximum amount of computing power to process the transaction block.
At the moment, Bitcoin has started to inch towards a downtrend. It seems that the top coin has completed its bull run and has now entered the consolidation phase. Decreasing hashrates also indicate that some of the miners have hibernated for the crypto winters.
The price of the top coin has retracted considerably, and testing levels at $44K once again. Bitcoin has incurred a 22% correction during the last 30 days, as shown by the price histogram at TradingView. At this point, it is highly unlikely that the top coin will be able to finish the year with the anticipated 6 figure evaluation.