The price of BTC/USD was choppy in early trading after plummeting to $51,300 lows in the prior day as investors reacted to Bitcoin Hashrates decline following north-west China blackouts.
- BTC/USD selloff quickly faded beneath MA 50 as overall risk sentiments improved
- Bitcoin has defended near term minor support levels for now
- Over the last 24 hours, the Hashrate of Bitcoin (BTC) mining pools has plunged
BTC rebound past the $55,400 zone suggests resumption of rising from $51,300 low may be elongated. Eyes will be on whether the price would follow and breakthrough $57,000 resistance to continue the rise beyond $60,000. Bitcoin downside scenario is another focus too, as a break of $53,000 key support indicates completion of correction from $64,899 ATHs. Besides, the selloff quickly faded beneath MA 50 as overall risk sentiments improved. While Bitcoin has defended near-term minor support levels, targets will firstly be on $60,000 psychological price to indicate the bullish bias remains intact. At press time the price is $56,096, BTC remains undefeated at no. 1 on the Coinmarketcap table, with a market cap of $1.04 trillion and $95.76 billion in trade volume over the past 24 hours.
Hashrate May Be Significant in Bitcoin’s Price
The Bitcoin network’s Hashrate is a general indicator of its computing power. The Hashrate of Bitcoin mining fell by 40% a week after an accident in a Chinese coal mine forced the entire Xinjiang region to shut down. The abrupt shift sparked questions about Chinese market domination, with one zone accounting for nearly half of all Hashrate. After the crash, Willy Woo, a crypto analyst, tweeted in the early hours of Sunday, “Price and hash rate has always been correlated,” referring to the November 2017 Hashrate plunge. According to the analyst, April 18th was the single largest one-day decrease in Hashrate since November 2017.
BTC Daily Chart: Ranging
The BTC/USD pair is rising as traders continue to watch the overall crypto market. The price has since rebounded to $56,790, which is slightly below the ascending trendline on the daily chart. Therefore, the pair may attempt to rebound higher as traders eye price returning to its channel. The Relative Strength Index (RSI) has fallen beneath its midline at 50 while the price is slightly above the moving average (MA 50). The pair may rebound later this week as bulls target the upper side of the channel above $60,000.
Technically, the rebound in BTC/USD continues to be impressive. Bitcoin’s break of $57,000 support turned resistance level should confirm short-term bottoming at $51,300 low. BTC/USD’s break of $60,000 resistance should also indicate the bullish bias remains intact. The break of the $60,000 resistance zone in BTC/USD would align the development with the above two scenarios. Such developments could help cushion Bitcoin’s decline versus the U.S Dollar.
BTC 4-Hour Chart: Ranging
On the 4-hour time frame, BTC/USD is looking a little bit more vulnerable as it has already plunged beneath the corresponding ascending trendline defining support of $57,000. A continuous break beyond the $57,000 level will open up the case of a rebound towards $58,367 support turned resistance. That could be an early warning of upside correction in other to remain bullish.
Meanwhile, at the same time, Bitcoin (BTC) just made a new record high of $64,899 earlier in the prior week. It’s holding well above the $50,000 lift-off zone, as well as $53,000 support. The bearish condition in the 4-hour relative strength index is not enough to indicate major topping yet. So overall, it’s still early to declare the arrival of medium-term scale correction in Bitcoin (BTC).
Resistance Levels: $65,000, $62,500, $57,000
Support Levels: $53,000, $50,000, $47,000
Image Credit: Tradingview
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