Despite price woes, Bitcoin continues to exhibit highly bullish technical fundamentals. This week, Bitcoin network hash rate set a new record, while its share of the overall cryptocurrency market cap rose above 70% for the first time since mid-March 2017.
A crypto trader, Crypto Michael, at the Amsterdam Stock Exchange, recently remarked that the 21-week exponential moving average acted as support throughout the last bull market after BTC tested it January 2016. Indeed, as he depicts in his chart below, Bitcoin had a tendency to fall by 33% to 39% to hit the moving average, then rocket back to fresh all-time highs in the coming weeks.
Regarding Bitcoin’s health Vortex tweeted:
#Bitcoin is extremely healthy right now:
-Surpassed $100b realized market cap
-Mining revenue surpassing $14b
-Mining Hashpower hitting new ATHs
— Vortex (@theonevortex) August 31, 2019
As miners become accumulators the demand-side plays a vital role to determine the operations’ overall profitability. In the absence of demand, miners would need to force-sell their bitcoins at a lower rate. The move would bring the prices down, overall. That also means that miners will shut down their mining rigs, which means a drop in hash-rate.
The latest drop below $10,000 is one of many that have occurred over the past 30 days, with Bitcoin hovering around this threshold since mid-August. In fact, this will potentially be the fifth time that BTC will test the critical support level at about $9,300 which is a level that has proven resilient since mid-June.
REgarding the same, former Wall Street investor Travis Kling says:
“The increasingly erratic U.S. president is yelling at an irresponsible central bank to act even more irresponsibly with its monetary policy, while running a $1 trillion deficit for the second year in a row… Central banks and governments are proving the profound need [for Bitcoin].”