Chinese Influence on Bitcoin Persists: Sudden and Significant Hash Rate Decline – What’s Behind It?
Bitcoin Price and Hash Rate Decline: Bitcoin started the week below $90,000 amid expectations of a Bank of Japan interest rate hike, while the network hash rate dropped by approximately 100 EH/s, equating to an 8% decrease.
Mining Farm Closures in Xinjiang: The decline in hash rate is attributed to the closure of Bitcoin mining farms in China's Xinjiang region, with at least 400,000 mining machines reportedly shut down, although the exact cause remains unclear.
Speculation on Local Pressure: Experts suggest that the simultaneous closures at major mining facilities in Xinjiang may be due to renewed local pressure rather than a new policy change.
Historical Resilience of Bitcoin: Similar sharp declines in hash rate have occurred before, particularly during China's mining ban in 2021, but the Bitcoin network has shown resilience, recovering and reaching all-time highs as mining operations relocated.
Get Real-Time Alerts for Any Crypto Movement
Technical Analysis for BTC
Technical Sentiment Analysis for Bitcoin (BTC) As of , Bitcoin (BTC) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 1 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for BTC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, BTC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Bitcoin (BTC) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 36425.103 | 48212.552 | 61160.853 | 72948.302 | 85896.603 | 97684.052 | 110632.353 |
| Fibonacci | 48212.552 | 57661.608 | 63499.245 | 72948.302 | 82397.358 | 88234.995 | 97684.052 |
About BTC
About the author
