By
Temitope Olatunji
April 24th, 2024
During the early Asian trading session on Monday, Bitcoin price dipped below $7,000 level to trade around $6,700. The fall was approximately 2.66%, BTC dropped below last week’s low. However, the BTC mining hash rate is on the rise.
As the world turned to a new week, the cryptocurrency sphere turned to a different direction led by the mother coin Bitcoin. During the early Asian trading hours, Bitcoin price drastically shed over 2.66% to trade below $7K and also below last week’s all-time low. At the time of reporting, the asset was trading at $6,710, as the European traders get ready to start the week. Meanwhile, the Bitcoin hash rate is rising.
The fall was similar to the rest of the top altcoins like ETH and XRP, which fell almost the same percentage. However, the traditional stock index market, led by the Dow Jones and the Nasdaq 100, has so far been on the rising channel.
BTC Price Technical Analysis
Using the BTC/USD derivative on the weekly chart, the asset is generally in consolidation, and the rising trend is valid if it does not fall below the 2018/2019 lows, $3,239. The current market price might play an important role in the rising trend if the asset rises to fix above this year’s high, $10,674.
However, checking the 4hr chart, the asset is precariously hanging on the same level that it began the January’s bull rally. The asset has broken the previous rising trend to form lower lows and lower highs, a characteristic of a falling trend. On a short term basis, the asset may continue falling to the previous lows around $5,000, before continuing with the overall bull rally.
Major Fundamentals That Will Affect the Asset, Bitcoin Hash Rate Changes
Currently, the crypto market is gripped by panic due to the uncertainty caused by the ongoing coronavirus crisis. It is well known that crypto trading is highly manipulated by speculative trading, which has in the past caused a huge bull rally.
The bitcoin community is anticipating a major bull rally in the coming weeks, as the halving event clocks below a month. Traditionally, the halving event has been a huge catalyst to the asset rise, which makes the event a big deal.
The event has become so popular that most people globally are searching for it online. According to google analytics, most people are searching for ‘Bitcoin halving price prediction’ and also ‘Bitcoin halving price chart’. The wave will be so huge that the asset will spike to a new high.
The head of research at Tradeblock James Todaro said:
“Following the bitcoin halving, miners’ estimated breakeven cost will rise from $7,000 today to $12,000-$15,000 per BTC after. I would not be surprised if we see Bitcoin prices rise above these levels so that miners remain profitable.”
On the other hand, it is notable that the BTC hash rate is on the rise, a phenomenon that is characterized by miners wanting to accumulate more coins in anticipation of future profits.