By Shelly Melancon (Switzerland)
The trading market saw the BTC trying to establish a firm stronghold against the dollar. Bitstamp trading data revealed that the BTC fell to $48,350 against the USD from $50k yesterday. According to market specialists, the dip is only a test for what is to come. Experts are predicting a strong rise above the $50k level.
Speaking about the chart, TradingView noted that the current BTC springboard is in the testing period for an expected bullish run. Once the resistance is beaten, BTC could rise again, considering the lack of external factors to beat it down again once it is above the $50k mark. However, other analysts have a different opinion concerning the bullish run. According to them, BTC needs to still break the $51k level to maintain a bullish trend.
Yesterday, BTC returned to $50k, the highest in almost two weeks amid over half a billion dollars loss in liquidation due to the short bears. Experts envisioned this as something positive until 24 later when it dipped to below $49k. The recent short volatility is worrisome, but as experts have indicated, $51k remains the mark to beat to sustain the bullish momentum in the long term.
Hashrate Recovery Records Huge Gains
Despite the dip in BTC today, the news about hash rate recovery dominated the market. Hashrate had been low since May due to the crypto regulations enforced in China that drove miners away. Hashrate’s bullish trend was the focus today, and analysts were excited to see the Bitcoin network show some resilience amidst the attack.
The hash rate today measured 129.2 exahashes, up from 125.7 exahashes that were recorded on Monday. Typically, prices aren’t affected by the hash rate. Still, it’s positive news worth celebrating. This further indicates that more miners are back in the game.
Hashrate May Still Drop If China’s Crackdown Continues
The hash rate may have recovered during the 24-hr window, but a further crackdown on mining operations could cause the hash rate to drop again massively. In the first quarter, China’s decision to ban mining resulted in a drop of hash rate power from 168 exahashes to 86 exahashes, an almost 40% drop. Although the BTC hash rate scaled to 197.6 in May, it slumped again due to the tough restrictions.
The ban also affected China’s stance as the majority in terms of hashing power. China accounted for 65% of mining rigs, but a significant amount of miners migrated to other regions with less strict mining regulations. If the crackdown on miners lingers, hash rate might drop further to an all-time low.
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