Bitcoin mining hashrate has shown a strong bounce from the downtrend caused by an extended Chinese crackdown on crypto mining. China was the biggest Bitcoin and crypto mining hub before the crackdown, most of the large mining farms in the country had to shut their operations post the ban, causing an immediate 50% drop in Bitcoin network hashtags compared to May. The hashrate has shown a strong recovery in July and is expected to grow further as more Chinese miners restart their mining operations overseas.
The Bitcoin network hashrate is still more than 25% down from a year ago, but that is expected when a region comprising of more than 50% network mining capacity goes dark within days. Market proponents deemed it as a short-term change and a big relief for the Bitcoin community, as the concentration of such a high percentage of miners in one place was one of the biggest criticism against the Bitcoin network’s decentralization.
Philip Swift, a popular crypto analyst on Twitter said the bounce back in hashrate would turn bullish for BTC if it manages to continue the climb.
1/ Hell of a bounce out of the green zone this week for the Puell Multiple.
Largely down to the difficulty adjustment and increase in hashrate. Will be a good sign if we see this and hashrate continue to climb quickly as #bitcoin miners come back onboard. pic.twitter.com/R7CBeMxCr6
— Philip Swift (@PositiveCrypto) July 9, 2021
Bitcoin (BTC) Price Looks to Claim $34K to Shed Weekend Blues
Bitcoin price has been in a two-month-long consolidation phase ranging between $30k-$40k. The top cryptocurrency has spent the majority of the last two months under $35K after the major sell-off in the second week of May. It has occasionally broken past $40K but couldn’t hold onto the gains.
BTC is currently trading at $33,782 reclaiming the key on-chain support of $33K after falling below it yesterday. The top cryptocurrency touched $34K briefly earlier today and looks to shed the weekend blues to target $35K key resistance again. Weekends are considered bearish for the crypto market owing to various external factors such as low trading activity, closed banks, and margin trading.
As bearish sentiment continues to dominate the crypto market, many analysts have predicted that we might not be at the end of the crypto market bull run. Many even suggest that we are nearing the second phase of the bull cycle rather than the end of the bull cycle.