In preparation for the "halving market", Bitcoin computing power, difficulty and other network indicators hit new historical highs

Bitcoin price appears set for a massive breakout as network fundamentals are trading at all-time highs as the 2020 halving event approaches.

Bitcoin Network Metrics Hits All-Time High (ATH)

With the Bitcoin block reward set to halve in less than a year, network activity parameters continue to hit new all-time highs. Data from Blockchain.com shows that metrics such as Bitcoin network hashrate, difficulty, blockchain size, and unspent transaction (UTXO) count are all at all-time highs.

At press time, the network hashrate stands at 74.5 quintillion hashes per second (74.5 million TH/s). This figure represents a nearly 140% increase in the amount of computing power devoted to securing the network since late 2018.

At the time, many nodes withdrew from the network due to a drop in mining profitability caused by an 80% drop in BTC prices, raising concerns about a mining death spiral. Half a year later, the situation is completely the opposite.

These huge improvements in network fundamentals have led to a massive influx of investment into the mining sector. Earlier in July, Germany-based cryptocurrency mining company Northern Bitcoin announced that it would purchase 5,000 ASIC miners from mining machine manufacturers Canaan Creative and Bitmain.

Will Bitcoin price hit a record high before halving?

Even before the 2020 block reward halving, there was much speculation that new price highs could be reached. Bitcoin is currently trading around $11,000, up 120% from the beginning of the year. Craig Cobb, a cryptocurrency trader at Tradercobb.com, expects Bitcoin to hit a new high of $27,200. However, Cobb said Bitcoin could fall below $9,000 before rising to new highs above $20,000.

The top-ranked cryptocurrency has seen declines of 20 to 30 percent in its 2019 trend so far. For Cobb, each pullback only brings BTC back to the “cradle zone” (the area of ​​price activity within the 10- to 20-period moving average).

As for what will happen after the halving, historical records may provide some insights. After the block reward halving in 2016, the price of BTC rose by more than 900%. This trend peaked in mid-December 2017, when Bitcoin almost broke through $20,000.

Price analysis, such as modeling shares in circulation, predicts that the BTC price will surge to $55,000 by the 2020 “halving” event. If the 10x growth of 2016 is repeated, Bitcoin will exceed $500,000 by the end of 2021.