Bitcoin hash rate comes closer to the 30-day moving average suggesting a bullish crossover, Bitcoin miners appear to be on the right foot.
Bitcoin miners seem to be on the right foot as the hashrate is on an upward trajectory after a free fall of more than 50%. Crypto Proof Dilution Analysis Company explained :
“The Bitcoin hashrate has rebounded enough that its 30-day moving average (Green) is close to a bullish cross of its 60-day moving average (Blue), which precedes a buy signal on the Hash Ribbon indicator (when the dark red area ends). ”
The hashrate is used to measure the processing power of the BTC network. It allows computers to process and resolve issues that would allow transactions to be approved and confirmed over the network.
Bitcoin’s hash rate comes closer to the 30-day moving average suggesting a bullish crossover.
A drop in the BTC’s hashrate was triggered by an escalation of the cryptocurrency mining operation by Chinese authorities, which began in May.
Bitcoin mining therefore remains undesirable on Chinese soil as Anhui became the last province to shut down all cryptoactive mining activities in the middle of last month, citing a severe power shortage.
In June, Chinese authorities disconnected BTC mining sites in Sichuan. As a result, more than 90% of China’s cryptocurrency mining capacity was impaired.
Data provider CoinMetrics recently reported that China’s sudden crackdown on mining in the second quarter of 2021 left miners with no choice but to shut down and move elsewhere. As a result, Bitcoin hashrate has dropped more than 50%, but it appears to be recovering.
The upward trajectory in the BTC hashrate is caused by a shift from East to West while in the United States. is emerging as the biggest beneficiary. For example, the share of the hashrate in the United States soared from just over 4% to 16.8%.
Bearish and neutral relationships between bought and sold.
According to the data provider Santimo:
“The long-short ratio has continued to fluctuate between bearish and neutral since Bitcoin crashed in May. The good news about the Bitmex contract finance rate remaining negative is that there is less downside risk for the BTC price. ”
With the Bitcoin hashrate recovering, whether this will lead to a price hike remains to be seen, as the downside risk continues to decline.