While the price of cryptocurrencies is taking its sweet time to reach their all-time highs, Bitcoin is holding strong above the important psychological support level of $10,000, currently above $11,300; the same can’t be said of the fundamentals.
The crypto industry continues to grow fast, and the latest metric to reflect this is the crypto ATMs.
In 2020, already more than 4,700 new bitcoin ATMs have been added, more than double of last year’s growth as only about 2200 new crypto ATMs were installed in 2019. The growth of these ATMs has seen almost a parabolic uptrend in 2020.
The biggest net change in crypto ATM numbers was recorded in September as 973 ATMs were installed this month, which has been growing since May. As a matter of fact, throughout 2020, more than 250 ATMs were installed every month, unlike ever before.
Genesis Coin is the dominant contributor to this growth as it manufactured 35.9% of these ATMs, followed by General Bytes, with its share just under 30%. Other manufacturers account for less than 10% of the number of cryptocurrency machines installed by manufacturer share.
As always, most of these crypto ATMs, 86.6%, are based in North America, with the US representing 78.6%. Europe is another continent with 11.3% of this share, while others account for less than 1%.
Bitcoin hash rate is reaching new all-time highs as the price surges above $12,000 to a 13-month high.
The hash rate of the largest network had a rocky start to 2020, seeing a huge drop following the March price crash and then due to May 11th halving. But now it has fully recovered and even eclipsed the previous levels.
This means the fundamentals are bullish, and network security is stronger than ever.
Bitcoin miner revenue, which has become more dependent on trading fees following the halving, has also been growing. Thanks to the average trading fee rising from $0.81 to $2.31 post halving, miner revenue surged 7% in July.
Starting at nearly $16 million, bitcoin miner revenue rose to $19.8 million in mid-February, as per Blockchain.com. But a month later, this revenue crashed to $6.9 million due to the price crash. But before the halving, it climbed to over $20 million only for the reward halving to push it back around $7 million.
Now, in August, so far, miner revenue is keeping in the range of $13.7 million and $10.39 million, the lowest point of this month hit today.
But with the price of Bitcoin back on an uptrend, things might get better for miners.
Soaring BTC prices and cheap electricity has been what is leading the hash rate to new all-time highs currently.
The 14-day mining hash rate has already climbed to a new all-time high of 127 Eh/s. This means the next difficulty adjustment, estimated to be positive 8%, within a week’s time could set a new record as well.
However, what has been pushing the electricity cost down is now leading to the drop of hash rate among major Chinese bitcoin mining pools.
The monsoon season in China brings abundant rain leading to cheap electricity prices. In the Sichuan province, which is estimated to account for more than 50% of Bitcoin’s total computational power, heavy rainfall is now affecting the operations. Molly, the head of marketing at HashKey Hub noted,
“The heavy rainfall in Sichuan is continually getting worse, caused internet blackout in multiple places in Sichuan, might cause bitcoin hashrate drop temporarily since over 70% of mining farms in Sichuan.”
And the hash rate has dropped significantly as per data from BTC.com, between 10% to 20% as bitcoin mining farms in the region are forced to unplug.
Gold is almost back to its highs. Time for Bitcoin to get on its horse and ride
USD on longest winning streak since 2012
After yesterday’s jump above $6,600, today Bitcoin surged yet again to almost $6,900. From yesterday’s lowest level of about $5,700, the world’s leading cryptocurrency has jumped 20.4%.
Not just bitcoin but global markets also rose on the optimism of a strong US response. European stocks rose broadly while Asia stocks recorded similarly strong performance with the futures market suggesting Wall Street would open strongly as well on Tuesday.
Markets have been reacting to the Federal Reserve’s unlimited QE on Monday. Other markets also signaled improved investor confidence as the price of the 10-year Treasury bond fell, sending yields higher. Gold prices soared over 4% to $1,603.78 an ounce.
Gold is almost back to it highs. I believe it’s going much higher. Let’s go $BTC. Get on your horse and ride. Same thesis.
The US dollar initially slipped after the Fed announced fresh measures to supply liquidity into the funding markets but it is back on course for a 10th day rising, the longest winning streak since 2012.
“Given the big picture view, the dollar is still in a fantastic position that will be difficult to dethrone, no matter what people say,” said the chief executive officer at Eurizon SLJ Capital.
The dollar continues to rise while the Fed has basically announced an unlimited money supply to help the markets. Fed President James Bullard who recently suggested unemployment could reach 30% and GDP could fall 50% also said, “everything is on the table.”
In the recent interview, President of the Federal Reserve Bank of Minneapolis Neel Kashkari said there is “an infinite amount of cash at the Federal Reserve” further clarifying, “That’s the authority that (Congress has) given us: to print money and provide liquidity into the financial system.”
The Federal Reserve says there is an “INFINITE AMOUNT OF CASH”
And this is the biggest argument for Bitcoin yet. “Think of it less in terms of the ‘price of bitcoin’ and more in terms of the ‘exchange rate between BTC & USD.’ Now consider what happens as the supply of bitcoin remains fixed (21M) while the supply of dollars becomes infinite,” said Bitcoin enthusiast Russell Okung, an NFL player.
Welcome to a world with infinite amount of money, wait, not for you!
And that’s why bitcoin enthusiasts, investors, and traders are extremely bullish on Bitcoin. “Bullish on USD liquidity squeeze and then I’m ultra bull on gold/crypto,” said pseudonymous former crypto trader Crypto Cobain.
If Trump re-opens the country and now we have 0% rates and unlimited QE, it’s going to be a race between the Dow and Gold to 100,000
Bitcoin hash rate down 28% from ATH on March 1st at 136.2 Th/s to below 100 Th/s
Bitcoin mining difficulty preparing for a negative 6.5% to 9.1% change
Mining profitability falls to its all-time low of 0.077
The price of Bitcoin is keeping stable at around $5,000, currently trading at $5,325 with 24 hours gains of 5.79%. In the past 24 hours, $1.75 billion worth of bitcoin exchanged hands.
The trading volume of the digital currency reached near record highs amidst the deep sell-off last week. On March 12th, bitcoin trading volume soared to a two year high with more than 416,000 BTC changing hands.
The high beat the second-highest day occurred on November 20, 2019, when bitcoin just like the past week, experienced a sudden, deep sell-off.
Hash Rate Drops
The bitcoin price went down to as low as $3,850, last recorded in March 2019. The hash rate of the network at that time didn’t falter but finally, the effects could be seen on the hash rate — the computation power to mine BTC. Bitcoin mining pool F2Pool said,
The network hashrate has dropped from a peak of ~124 EH/s to ~102 EH/s, while the bitcoin price has dropped from $9000 to $4800.
There is always a time lag for hashrate to decrease due to hosting contracts, and time required for operators to turn off a large number of machines.
Bitcoin miners, particularly in China have started to feel the brunt of the BTC price crash. According to data from F2Pool, a majority of the mining pools have recorded a drop in hash rate. F2Pool tweeted on March 12,
On this day of red, #bitcoin daily mining revenue per TH/s is suffering more than at the ~$3k #BTC price bottom in Nov/Dec 2018.
Crypto exchange Huobi’s mining pool experienced a drop of 26% over the past week with 1THash close behind with a loss of 20%. Meanwhile, the bigger pools like Pooling, F2Pool, and Btc.com saw a decline of only 18%, 12%, and 10%.
The bitcoin mining difficulty that has been surging in line with the hash rate and has yet to see a decline is preparing for a negative 6.5% to 9.1% change in the difficulty in the next 8 days. F2Pool said,
Bitcoin mining profitability has already taken a hit. Less than two months away from reward halving, mining profitability has fallen to its all-time low of 0.077.
Miners’ average revenues have fallen sharply this week.
The last time revenues were at this level was in May’19, with difficulty less than half of current rate. Difficulty level reflects the amount of hash power allocated to #bitcoin and is a proxy for operating costs. pic.twitter.com/tlcQkE4yLx
With revenues gone flat and a 100% increase in costs, miners will feel the pinch right now which would result in an increase in block times and fees as “transactions compete for space in the chain,” said James Bennett, CEO of crypto data analysis firm ByteTree.
Difficulty on a lot of gpu coins is coming down already. Still mining profitably, but I have cheap electricity as well.
BSV/USD trade has been featuring lower lows and lower highs in its price valuation.
The price worth of BSV put under slight check-making pressure by the US dollar.
A downward-break of the $300 lower range point may cause fearful trading conditions in the BSV/USD market price.
Major distribution territories: $500, $600, $700 Major accumulation territories: $200, $150, $100
Bitcoin SV (BSV) Price Analysis
Some degree of featuring lower lows and lower highs has continued to play out in the BSV/USD trading cycle from February 16 until the present. Those market-moving patterns took shape mainly around $300 mark.
The crypto may continue to put under a check-making slight pressure by the US economic monetary instrument around the mark mentioned earlier. But, a sudden intense downward pressure could result in letting the pair to a lower value position a bit below or around the major accumulation territory afterward.
Bitcoin SV (BSV) Technical Indicators Reading
It appears that the 14-day SMA trading indicator will take position around $300 price territory for a while. And, the 50-day SMA trend-line points to the north closer to the BSV/USD market value mentioned from below. That signifies the potential of seeing the $300 mark serving as a pivotal line for the BSV/USD market bulls in the long run.
The Stochastic Oscillators have densely traversed southward closely to range 20. That showcases that there haven’t been many selling forces in this crypto-economy.
The BSV/USD market north wall that previously occurred on January 14, hasn’t decimated by the bears pushing effort that came up in the succeeding trading sessions until the present. By so doing, the bears’ action has only led the price to move in a ranging outlook chiefly around $400 and $300 values. A downward-break of the $300 lower range point will signify dangerous warning of witnessing fearful price trading conditions.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.
The Bitcoin network hash rate, which was reaching all-time highs a few weeks ago, has recently dropped around 40% yesterday. The news comes as a shock for the network as the numbers were pretty good so far. According to information from Coin.dance, the hash rate plummeted from 98 million to 57,7 million TH/s.
Just five days ago, Bitcoin reached an all-time high speed, so it was considered very weird that such a low hash rate was discovered yesterday. Several traders and analysts are still trying to understand the flash crash.
A hash rate, in case you have been wondering, is the rate that shows how much power the network is using to mine tokens. The more miners there are out there, the higher the hash rate will tend to be. Such large drops can mean several different issues, so it is hard to explain why this happened.
Many mining rigs could have been shut down for some reason or maybe another smaller event made the network to be considerably slower than it normally is. In any case, a high hash rate is important because it means that there is more protection against 51% attacks that could disrupt the network.
A high hash rate also means that the prices of Bitcoin will tend to go up. The Bitcoin maximalist Max Keiser has recently affirmed that price always follows the hash rate so if the hash rate continues to go down, this could mean that prices would be affected in a negative way.
Bitcoin target is higher highs, close above $11,967 and this will be bullish
Below $10,759, we are bearish
The leading cryptocurrency has now taken to trading sideways after seeing almost $9,600 earlier this week. Though we took a jump and went above $12,000, we haven’t been able to make any big moves yet.
We are currently in a consolidation period after the 30 percent drop before we jump to a new high.
At the time of writing, BTC/USD has been trading at $11,451, up 1.04 percent in the past 24 hours with 24 hours trading volume of $1.6 billion.
Bitcoin Need To Make Higher High
According to the crypto trader and investor, Josh Rager, Bitcoin is looking bullish as we flip resistance into support on the close of the 4 hours chart. If Bitcoin manages to hold current support, we can see its price retesting local highs. And this, he says would be “quite bullish” for an upward continuation.
Bitcoin has weekly open holding as support at $10,759 and if we close under this level, Bitcoin would turn bearish.
On the 1-hour time frame, Bitcoin bounced off the weekly open below that makes Rager neutral. Currently the world’s top cryptocurrency is trading in a small range between $11,218 and $11,445. In order to start getting bullish, “Bitcoin needs to close above local high & make higher-high” which is present at $11,967 level.
Bitcoin has already made a 30 percent pullback and as previously reported, the last bull cycle saw about nine such pullbacks. These corrections of an average of 30 percent resulted in consolidation and then about 154 percent of the jump before seeing another major pullback.
However, popular analyst and trader Benjamin Blunts is still very much skeptic of Bitcoin’s upward move.
we broke that channel and then twitter went full bulltard again.
Bitcoin makes new 2019 highs but we could pullback to test $10k
While the market is ultra bullish, Crypto analyst Magi Poop Cannon assesses the “very real downside risk”
Bitcoin is flying high having shot past $10,000 and hitting $11,200 a new high of 2019 that was last hit in March 2019. The market is extremely bullish right now with the FOMO level being hit. This has the experts calling out an uptrend only to experience a few retracements of about 30 percent during this cycle, as we did in the last bull cycle.
However, one analyst is still calling out a hard crash and that’s Magic Poop Cannon who is standing firm on his ground that we would see $3,000 after having surged 185 percent till date in 2019 following the dump to $3,150 in 2018 which majority of the analysts called the Bitcoin bottom.
On the ongoing move, Magic sees us pulling back to test $10k, “we’re in the big leagues of volatility right now.”
In his latest analysis, Magic shares how despite the whole world being ultra bullish on crypto, we need to pay heed to the fact that it is a highly volatile market. Though Magic says he doesn’t want to spread FUD, he did say, we need to asses the “very real downside risk.”
A Head and Shoulder pattern to Take us to $3k
On the daily BTC chart, Magic says it is printing several divergences on the indicators while exploding to higher highs. This he says means we could be coming to the end of this rally as “we aren’t going to go up forever.”
As we are seeing currently Bitcoin is in a very clear uptrend, acknowledges the analysts and he doesn’t see Bitcoin falling right now, however, there is weakness building in the underlying indicators that aren’t supportive of a continuation in this parabolic move.
One such possibility is that Bitcoin could form a head and shoulders pattern, with the left shoulder already formed and we may be half way through a head. But there isn’t “enough evidence” to support it yet.
And this is how he comes to the drop to $3k.
The five capital sins in crypto trading:
1. Repeatedly trade against the trend 2. Over-leverage 3. FOMO 4. Fade breakouts 5. Don’t respect stop losses
Providing an extension to this pattern, he says to complete a head, we would go down to the low $7,000’s. From here, in order to form a right shoulder, it could take us all the way back down towards $3,000.
“Don’t think for one second, that downside risk doesn’t exist,” warns Magic.
NVT (network value to transaction indicators) has never failed in the entire history of Bitcoin, Magic said. This doesn’t mean NVT can’t fail but it has a great track record thus far. And when NVT finally throws a hard sell signal, that would be when we would see a “catastrophic” fall like this.
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