Analysis: The divergence between Bitcoin's price and its hash rate or total network computing power may lay the foundation for a potential rebound. The difference between Bitcoin's price and its hash rate or network's total computing power may lead to an increase 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, Bitcoin's price bottomed out during these events and then rebounded as the market caught up with the continuously rising hash rate.

The Bitcoin network’s hash rate rises and falls depending on how many miners’ mining computers are online validating transactions. Consistent with this pattern, Bitcoin has shown signs of recovery, gaining about $9,000 since bottoming on Sept. 6.

This divergence between Bitcoin’s price 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 Bitcoin’s price approached $54,000. Original link