The Bitcoin (CRYPTO: BTC) price is up just over 1% in the past 24 hours.
At time of writing, the world's biggest crypto by market cap is trading for US$44,129 (AU$61,762).
Crypto investors have been keeping a close eye on the Bitcoin price since the token rocketed to fresh all-time highs of US$68,790 on 10 November.
For a while it seemed like it was mostly downhill from there.
On 24 January the Bitcoin price dropped as low as US$33,184.
With these kinds of outsized gains and losses, eToro's market analyst and crypto expert Simon Peters analysed a key metric to help decipher what investors can expect next.
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How this key metric bodes well for the Bitcoin price
To get a better handle on where Bitcoin could be heading next, Peters looked at the hash rate, sourcing data from Blockchain.com.
If you're not familiar with the term, the hash rate measures the number of computers actively engaged in mining Bitcoin.
Importantly, this has just reached a record high.
According to Peters:
The crypto asset's hash rate has been climbing steadily since July 2021 and has faltered little despite recent falls in the Bitcoin price. The greater stability in the hash rate is a positive signal that the recent downturn is related more closely to temporary uncertainty rather than long-term commitment from important players such as miners.
What can crypto investors expect next?
"Hash rate data tends to lag the bitcoin price so we may see some softness from the current all-time high," Peters said. "But the Bitcoin price is on track to recover ground lost in January."
Peters added, "The hash rate's position at such high levels is indicative of more participants than ever in the network, something that long-term investors will take significant confidence from."
