But, now, this has normalised, with that recent dip suggesting that they’re becoming calmer and more confident with the price of Bitcoin at the moment as it is. So let’s take a look at the charts and see how you can trade on these insights.
Beginning with the one-hour chart, we can see that $54,800 has formed itself is a critical level. I’ll be waiting for a break above that level to initiate long positions with a target at $55,400. And then the next level is going to be $56,200. Conversely, below $54,800, I’m seeing the downside prevailing, with targets at $54,400 and $53,400.
Next, let’s move to Ethereum. On the one-hour chart of Ethereum versus Stellar, we can see that the MACD is just above the former bullish signal, with the blue line crossing above the red signalling line. The Relative Strength Index is recovering nicely.
China power outage bitcoin
Per Wan, the “coal mine explosion is considered top level security incident leads to central authority’s scrutiny on individual mining operations and related local government agencies. Hence the cut off is under going amidst the central authority’s on-site inspections.”
The current Bitcoin hashrate at 169 EH/s, down from 208.5 EH/s recorded late on April 15 – an 18.65% drop.
It’s still not as low as 143.2 EH/s seen just a day prior, on Wednesday.
Looking at the 7-day moving average, Bitcoin hashrate has been steadily climbing since mid-2017, reaching its all-time high on April 11, hitting 148.6 EH/s.
Chinese power outage bitcoin
He said the bitcoin firms need to obtain legal permission from the government, which clearly defines the limitations and protocol for extraction processes.
While the use of bitcoin is seen as one of the ways to counter US sanctions, with one lawmaker recently suggesting that it can bring it more revenue than the export of oil under sanctions, there have been concerns over its burden on the country’s electricity grid.
Bitcoin mining, which takes place in high-tech grids with many high-processing computer systems, puts enormous pressure on the demand for electricity, experts assert.
Anadolu Agency website contains only a portion of the news stories offered to subscribers in the AA News Broadcasting System (HAS), and in summarized form.
Moreover, reports emerged that speculated that mining farms in Xinjiang were closed on the same day due to a coal mine accident earlier in the week
Contrary to popular notion, many experts in the community believe that Bitcoin’s hash rate was not slashed by half, rather they opined that the figure declined by only 20% and that this was not the reason for the downsizing of the crypto-asset. One such is the Co-founder and the CEO of Blockstream, Adam Back who clarified,
“hash rate has never been above 168 EH, and last week’s low from power station failure is 124 EH.
China power outage bitcoiner
Hello and welcome, everyone. It’s Martin here with CryptoGains. Today, we’re going to discuss the recent drop in Bitcoin from three different angles, based on data provided from Glassnode.
First of all, one of the narratives around the correction in Bitcoin is around the substantial drop in hashrate that we experienced, which was largely attributed to a power outage in China.
And that correction started normalising as soon as the hashrate started normalising, as well.
In addition to that, over the weekend, the Open Interest in Futures Contracts in Bitcoin had reached a new all-time high at $27.4 billion.
China power outage bitcoins
The flood that trapped 21 employees at a coal mine in the western region of Xinjiang on April 10 21 employees in a coal mine in China’s western Xinjiang region on 10 April China, has also affected the Bitcoin. As many mining farms in the area were left without electricity to power their electricity to power their operations, the cryptocurrency’s hash rate plummeted, Bitcoin Magazine reported.
A strategic region
The hash rate is an index that measures the processing capacity of the entire Bitcoin network.
The more miners are available to process data, the higher the hash rate, the more transactions the network can resolve. By April 15, Antpool’s hash rate had dropped by 24.5% in 24 hours, Binance Pool’s by 20%, BTC.
China power outage bitcoinminer
In April, Bitcoin crashed to $52,000 after crossing the $60,000 benchmark. Apart from the upcoming crypto regulations from the United States, several experts blamed the crash on a drop in hash rate. As per the reports, there was a major power outage in Xinjiang, China, which disrupted the activities of Bitcoin miners.
Although many analysts have claimed that the recent crypto market corrections were fueled by an announcement from Tesla (NASDAQ:TSLA) and a clampdown on crypto mining activities by Chinese regulators, Bitcoin’s hash rate has dropped in Sichuan, China, following limitations on power usage.
Earlier this week, the State Grid in Sichuan’s Aba County issued a notice demanding that households and local enterprises limit their power usage amid surging utility demand.
And whenever we have excess leverage in the system, it’s quite possible to experience such substantial drops. And this is exactly what happened as the market flushed all that excess leverage, with $1.847 billion in contracts liquidated in a matter of hours.
And this is almost twice as big as the previous all-time high of liquidations, which we experienced on 22 February.
Also, it’s interesting to observe how the short-term holders are behaving. And we can see that the Spent Output Profit Ratio reset the 0.985 level, which suggested some losses were taken.
But as you can see, whenever that ratio tests the level of 1, this is usually when the correction is over, and the uptrend in the Bitcoin cryptocurrency resumes.
Finally, what’s interesting to observe is that some of the long-term holders based on the same ratio have been taking profit in the $50,000 to $60,000 range.
And what we’re aiming for here is a recovery above 50. So to me, the pivotal point is $2125. Above that level, initiating long positions, with the first target at $2150 and then $2210.
Conversely, below $2125, short positions with targets at $2080 and $2056.
Next, let’s take a look at Ripple. After almost reaching the level of $2, Ripple is now creating gains.
As we can see, the chart has been very volatile. Personally, I’m seeing $1.27 as the pivotal point, and I’ll be waiting for a break above that level before initiating long positions, with targets at $1.32 and $1.38. Conversely, below $1.27, I’m looking to sell Ripple, with a target at $1.18.
And finally, let’s take a look at one of the best performers over the last few days. That’s Dogecoin.
But not everyone was reached the same consensus.
Willy Woo’s Remark On Bitcoin Hash Rate Affair
Willy Woo, the popular on-chain data analyst is of the opinion that the crypto-asset’s price and hash rate have always been correlated. Woo went on to explain that 9000 BTC was sent into Binance, on the same day as of the price crash.
While acknowledging that Binance more serves volume from Asia than the West, he speculated that the amount was sent in from a whale with “closer knowledge to happenings in China”.
Delving more into details, Woo also said that the market-wide meltdown was compounded by the sell-off of quarterly futures on derivative markets which was already underway as early as 13th April.
“The two combined sell pressures were sufficient to tip the price below liquidation levels ($59k).