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Bitcoin price recoils from $11,000 as hash rate expands

Bitcoin BTC
  • Bitcoin price reacts from $11,000
  • U.S. Presidential elections to influence Bitcoin and USD value
  • Bank of England considers negative interest rates
  • Strong support at $10,500

The Bitcoin price might be recoiling from $11,000 but solid fundamentals prop the coin. The network was built to be a safety net for banks’ recklessness. 

A few years back, during the Great Financial Crisis (GFC), banks’ greed led to a catastrophic failure in the United States, an event that snowballed and became a global financial crisis, paving the way for Bitcoin.

The Bitcoin network is stronger ahead of the U.S. presidential elections

As the Federal Reserve goes Brrrr, printing billions of dollars and weakening the greenback, Bitcoin continues to harden. 

In the third epoch, instead of mining hash rate dropping, the confidence in the BTC and its network continues to grow. 

Thus far, the hash rate is over 135 EH/s, indicating just how miners are pouring in more money into a technology that’s so reliant on their presence. As the network adjusts, it becomes harder to mine BTC when the network difficulty is subsequently corrected higher.

Notably, the bulwark of the network is just two months before the U.S presidential election of which there is a lot of uncertainty. Even though Bitcoin is censorship resistant and depends on its distribution to dilute political domino effects, the coin positions itself as an alternative store of value. 

Like gold, BTC stands to be a major beneficiary ahead of the election.

Bank of England considering negative rates

Last week, the Bank of England (BoE) surprisingly said it could consider negative interest rates because of the uncertainty of Brexit. 

This comes at the back of an easy monetary policy where interest rates were slashed to 0.1 percent as the central bank ramped up its purchase of bonds in their aggressive quantitative easing to avert a recession. 

With talks in progress–and the likelihood of the U.K. breaking away from the E.U. without a deal, the pound could sink because of inflation fears and the risk of a recession. 

Considering Bitcoin’s ingenious architecture designed to arrest inflation through scarcity and its gradual acceptance at the institutional level especially in the U.S. and select countries in Europe, odds are, savvy investors will dump the pound for Bitcoin, USD, or gold in the next few weeks as part of risk management. 

Bitcoin price analysis

Bitcoin price chart
Bitcoin Price Chart by Trading View

The Bitcoin price is outperforming both the greenback and ETH in the last week of trading, adding six percent and three percent, respectively.

In the daily chart, after days of higher highs, last week ended with a dip, another rejection of $11,000. Notably, bulls didn’t reverse the steep losses of Sep 3. From volume analysis, the leg up from early September was with low trading volumes. This suggests low participation and liquidation as part of profit-taking.

Unless there is a sharp break above Sep 3 highs with high trading volumes exceeding those of Sep 3—data from Coinbase, bears are most likely in the driving seat. Immediate targets are therefore at $10,500 and $9,800.

Conversely, a sharp close above $11,500 will break bear resolve.

Dalmas Ngetich

Dalmas Ngetich

Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies. Enjoying the opportunity to help educate bitcoin enthusiasts, he writes insights and coin price chart analysis.

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