Tanya Abrosimova
Independent Analyst
- Bitcoin's price may follow the lead of the hash rate.
- BTC/USD needs to regain ground above SMA200 daily.
Bitcoin hit the highest level of 2020 at $9,184 on Sunday and retreated to $8,638 by the time of writing. The first digital asset has lost 4.6% of its value in recent 24 hours and stayed unchanged since the beginning of the day as the market calmed down after the weekend volatility.
Bitcoin's hash rate reached an all-time high. Again.
At the end of the previous week, Bitcoin's hash rate reached 126 exahash per second (EH/s), which is the highest level on record. It means that Bitcoin miners need to put more computing power at any given time to "discover" answers to the cryptographic puzzles. The figure of 126 exahash per second means that miners need to go through 126,000,000,000,000,000,000 guesses (hashes) per second before they find an answer.
A rising hash rate is considered a good signal as more miners join the network and make it more secure and hack-resistant. Thus, it is indicative of growing miners' interest. According to Max Keiser, that calls himself a tweet poet, there is a direct correlation between the price and the hash rate:
Price follows hash rate and hash rate chart continues its 9 yr bull market.
Thus, the recovery in 2019 after the price hit bottom in December 2018 was predicted by the changes in the hash rate. However, it may take some time before the price catches up with the hash rate.
BTC/USD: technical picture
Bitcoin's recovery is still effectively capped by SMA200 daily at $9,027. The price will need a sustainable move above this pivotal resistance for the upside to gain traction and take it to the recent high of $9,184. The next strong barrier is created by the upper line of the daily Bollinger Band at $9,300 and 38.2% Fibo retracement of the upside move from December 2018 low to July 2019 high. This area is likely to slow down the recovery and trigger a short-term correction.
On the downside, BTC will need to stay above $8,500 to retain the bullish bias. If this support area is sustainably broken, the sell-off pressure will intensify with the next bearish aim at a psychological $8,000 reinforced by the broken upper boundary of the wedge formation.
BTC/USD daily chart
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
TRON gains 10% in 2024, supply of stablecoins reaches over $50 billion in Q1
TRON, a blockchain-based digital platform, has seen positive growth in the first quarter of 2024, as seen in a Messari report. TRON noted gains across several metrics like market capitalization, revenue and total value locked.
XRP hovers near $0.50 as Ripple CTO addresses concerns related to stablecoin launch
XRP is hovering near $0.53 on Friday, spending nearly all week below $0.55. Ripple CTO David Schwartz addressed concerns on stablecoin and XRP utility on Thursday.
Terraform Labs set to restrict access for users in the US after recent ruling in SEC lawsuit
Blockchain company Terraform Labs said Thursday that it will restrict access to some of its products and services for US-based users as it expects to receive a court order soon in light of its legal battle against the US Securities and Exchange Commission (SEC).
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.