On September 21, CoinDesk reported that the divergence between Bitcoin’s price and its hashrate, or the total computational power of the network, could signal a potential price surge for the largest digital asset.

Historically, these divergences have occurred only a few times in the past three years. In some instances, Bitcoin’s price has bottomed during these events, followed by a rebound as the market catches up to the rising hashrate. The Bitcoin network’s hashrate fluctuates depending on how many miners’ computers are online validating transactions.

Consistent with this pattern, Bitcoin has shown signs of recovery, rising approximately $9,000 since its bottom on September 6. This divergence between Bitcoin’s price and its hashrate began forming in July and continued until early September, when the network’s computational power hit a record high of 693 EH/s on the seven-day moving average, while Bitcoin’s price hovered near $54,000.