Bitcoin network activity hits a new all-time high as mining activity surges mainly due to cheaper electricity.
Bitcoin price is embracing a sideways trend between $9,200 support and the resistance at $9,400.
Bitcoin hash rate, according to the data released by TradeBlock, a cryptocurrency firm, has hit a new all-time high. A chart image published by the firm shows that the seven-day moving average of the hash rate has crossed above the 124 exahashes per second; an increase that has seen double-figures compared to the same time 12 months back.
Traders and investors across the board are seeing the metric as a great indicator for a possible Bitcoin rally. Analysis regarding the same has also shown that mining activities have a direct correlation to the price of the largest cryptocurrency. Some of the factors behind the hash rate surge are the rollout of new ASICs mining equipment which means more efficiency and the availability of cheap electric power following the heavy rains in China.
Bitcoin Price Technical Picture
Bitcoin price has remained range-bound between the key support at $9,200 and the range resistance at $9,400. The sideways movement shows that consolidation is the path of least resistance. Buying pressure is strong enough to hold the price above $9,200 but has not been able to sustain gains above $9,300 let alone break the resistance at $9,400.
BTC/USD daily chart
Meanwhile, Bitcoin is trading at $9,265 while battling the immediate resistance at a descending trendline. Indicators such as the RSI and the MACD emphasize the strong sideways trend. The latter is moving sideways at 0.00 while the RSI is holding the ground at 50 (the midline).
The 50 EMA is providing support above $9,000 while the 100 EMA in the daily range is in line to stop declines towards $8,000. As mentioned the path with the least resistance is sideways in favor of consolidation.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org