Bitcoin Hash Rate nearly Doubles, BTC Traders Confident despite Resistance at $40k
Bitcoin Open Interest Rising as $ 40k Stands as a Strong Liquidation Line
There is some semblance between the current state of Bitcoin price action and that of the tail end of 2020.
This is the observation of a Stack Funds report.
Its analysts concluded that traders are overly cautiously optimistic although accumulating, reading from the number of open interest—the number of open positions in the Bitcoin derivatives market.
On-chain activity remains remarkably lacklustre.
Open Interest still elevated but funding is now positive.
Green #Bitcoin candles are good….
…but I am keen to see the follow-through…Big swing, no ding (yet…) pic.twitter.com/tS45gAKZCQ
— _Checkmate.btc ?⚡??checkonchain.com? (@_Checkmatey_) July 26, 2021
At present, Bitcoin bulls have failed to flip $ 40k—an important psychological level. However, the buildup in the number of leveraged positions across derivatives platforms combined with the expiry of Bitcoin Options on July 30 could see BTC/USD prices recover.
In the last bullish cycle from late 2020, the Bitcoin price rose from around $ 10k to peak at $64.5k, easily sliding and more than tripling after blasting above $20k—level critics had maintained Bitcoin wouldn’t break.
Accordingly, if Bitcoin prices comprehensively close above $40k, odds of another moon-swing would be elevated.
Bitcoin Hash Rate Nearly Doubles after June 2021 Drops
Hash Rate, a measure of a public ledger’s proof-of-work computing power, is recovering in Bitcoin. It is roughly a month since it cratered to around 68 EH/s. At present, the total Bitcoin hash rate has nearly doubled to about 115 EH/s as per trackers.
This is pinned on miners who withdrew from China, switching off gear, moving to new locations, and plugging back their equipment, helping secure the network.
In June and July, Bitcoin had to dump down mining difficulty in response to crashing hash rate, presenting an opportunity for miners in other jurisdictions to profit.
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