On Saturday, the price of Bitcoin Faces Bearish remained inside a narrow range as the hash rate continued to decrease and negative divergence occurred, which increased the likelihood of a bearish breakout. 0.07% Bitcoin (BTC) As the market reacts to the most recent report from the Bureau of Labor Statistics, which indicates that the economy of the United States produced more than 256,000 jobs, the price of bitcoin was trading at $94,296 at the time of the last check. The average rate of unemployment dropped to 4.1%.
As a direct consequence of this, the Dow Jones and Nasdaq 100 indices both experienced a decline of 697 and 317 points, respectively, in the performance of American stocks. In line with what crypto. News anticipated that the bond market maintained its downward trend, with the yield on the 30-year bond increasing to 5%. The yields on the 10-year and 5-year terms rose to 4.76% and 4.57%, respectively. As a result of the rising yields, the market anticipates that the Federal Reserve will continue to maintain a hawkish tone, which normally impacts risky assets such as Bitcoin and other cryptocurrencies.
Bitcoin Hash Rate and Activity Decline
IntoTheBlock’s information indicates a decrease in Bitcoin’s hash rate over the past few days, while the cryptocurrency’s price has remained unchanged. Its hash rate on Saturday, January 11, was 750 TH/s, lower than the 30-day high of 911.88 TH/s and the 30-day average of 793 TH/s. The 30-day high was reached on January 11. Importantly, a hash rate measures how quickly the network solves mathematical problems. We measure this rate in bits per second.
The number of active Bitcoin addresses has decreased to 775,000 from 900,000 on Monday, according to further data stored on the blockchain. This is an indication that some traders have begun to sell their holdings. For instance, according to SoSoValue, all spot Bitcoin exchange-traded funds (ETFs) had withdrawals that amounted to $572 million over the course of the past two consecutive days.
Bitcoin Faces Bearish Breakout Risk
Based on the daily chart, there is a probability that Bitcoin may experience a negative breakout. An extremely risky head and shoulders pattern is present on the chart, with a neckline of $90,952. Bearish patterns are extremely widespread in the world of trading, and this is arguably one of the most common ones.
As a result of the convergence of the relative strength index of Bitcoin and the MACD indicators, a pattern of negative divergence has been constructed. This has led to the convergence of the various indicators. A change in the market is indicated by the fact that the MACD histograms have moved below the zero line. This is a sign that the market has undergone a shift.
Bitcoin Nears $90K Drop Bullish Pattern Intact
As a result, a breach below the H&S neckline at 90,950 constitutes a potential risk of additional decline. The 200-day moving average, currently at $78,285, will serve as the initial support for this, followed by $73,985, the highest point in March of the previous year.
The price of Bitcoin is building a bullish pennant chart pattern on the weekly chart, as we reported earlier this week. This is a favourable development. To the extent that it remains above $90,000, that trend will continue to be in effect.
FAQs
What is the current Bitcoin hash rate trend?
The Bitcoin hash rate has been decreasing recently, with a current rate of 750 TH/s, which is lower than both the 30-day high and average.
How are active Bitcoin addresses trending?
Active Bitcoin addresses have decreased from 900,000 to 775,000, indicating that some traders may be selling their holdings.
What is the current support level for Bitcoin?
The 200-day moving average at $78,285 is the initial support, followed by $73,985, the highest point from March of the previous year.
Is there any bullish development for Bitcoin?
Yes, Bitcoin is building a bullish pennant chart pattern on the weekly chart, which could continue as long as the price stays above $90,000.
