TL;DR Breakdown
- The Bitcoin momentum has slowed down considerably.
- Bitcoin hit a price of less than 34k which raised a low of eyebrows.
- The ‘death cross’ event also occurred which might lead to a huge sell-off.
- The hash rate decreased from a high of 168 hash/second to less than 100 hash/second.
With the decrease in the price of BTC this week, there are still no signs of recovery as the ‘death cross’ event occurred. Bitcoin’s downfall led to a decrease in the prices of all the altcoins. Bitcoin was able to reach $41K and it was speculated that it will make a swift recovery, and thereafter, reach $45K. This, however, remained a distant dream for the investors who were expecting bullish growth.
A decrease in trading volumes was followed by a decrease in the price of Bitcoin. Investors have put major support at $31K which if the coin breaks, will lead to the fall of the entire crypto market. This weekend started with a rather poor performance by the entire crypto market as many bullish traps also emerged. The market seemed to be in internal strife over the coming of the ‘death cross’.
What’s next for Bitcoin investors?
The trading volumes have died down by a significant amount. According to the Binance records, a major buy wall was placed at the price of $36,500 which was destroyed by the sellers, indicating huge selling pressure. This led to the establishment of another huge support at about $31,000. If the price breaks down below this level, we will see further damage. Hence, investors are advised to stay cautious.
The ‘death cross’, i.e., the point where the 200-day moving average is crossed over by the 20-day moving average, has emerged and it was expected that it will happen sometime on Sunday. This occurrence adds fuel to the fire and led to the down of Bitcoin.
This was followed by the hash rate downtrend owing to the decrease in the volumes and the closure of big Bitcoin mining farms in China. There are multiple events that are currently affecting the price of Bitcoin and it is hard for the price of the coin to tackle all of them at once.
The above diagram clearly shows the decrease in the hash rate of the coin. The bears have indeed arrived and investors need to be careful.
