Bitcoin price analysis: BTC/USD tests area below $9,600 as hash rate drops by 30%

  • BTC/USD has recovered from the intraday low, but bearish sentiments are still strong.
  • Bitcoin's hash rate drops by more than 30%

Bitcoin hashrate collapsed from the recent all-time high above 100 Th/sec and reached 67 Th/sec. This 30% decline coincided with the sell-off on the cryptocurrency market. At the time of writing, BTC/USD is changing hands at $9,700. The first digital coin has recovered from the intraday low of $9,599; however, the bearish pressure remains strong. 

Bitcoin dropped under $10,000 on September 22 and has been moving down ever since. Meanwhile, from the longer-term perspective, the coin retains positive bias. Thus, the coin has gained over 160 since the beginning of the year. 

Despite the hash rate decline, the manufacturers of mining equipment expect it ti exceed 120 Th/sec by the end of the year. They believe that strong demand for the miners will drive the hashrate higher.

Bitcoin's technical picture

Looking technically, BTC/USD moved outside the Bollinger Band on a daily chart with its lower boundary now creating an initial resistance for the price ($9,768). The ultimate resistance awaits us on approach to psychological $10,000. Once it is out of the way, the upside is likely to gain traction with the next focus on $10,200 ( the middle line of a Bollinger Band on a daily chart). 

On the downside, a move below $9,600 will trigger more sell-off and push the price towards $9,300, which is the lowest level from August 30. 

BTC/USD, daily chart

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