Bitcoin miners appear to be on the right footing as the hashrate is on an uptrend after plummeting more than 50%.
Cryptanalysis company Dilution-proof explained:
“The Bitcoin hashrate has recovered enough that its 30-day moving average (green) is close to a bullish crossover of its 60-day moving average (blue), which precedes a buy signal on the hash ribbon indicator ( when the dark red area ends). “
The hashrate is used to measure the computing power of the BTC network. It enables computers to process and resolve problems that would allow transactions to be approved and confirmed across the network.
Crypto mining continues to be undesirable on Chinese soil
A drop in BTC’s hash rate was triggered by increased crackdown on crypto mining by Chinese authorities, which began in May.
Bitcoin mining is therefore still undesirable on Chinese soil, since Anhui was the last province to stop all crypto mining activities in the middle of last month, citing an acute power shortage.
In June, the Chinese authorities shut down the BTC mining sites in Sichuan. As a result, more than 90% of China’s crypto mining capacity has been hampered.
Cryptocurrency provider CoinMetrics recently announced that China’s sudden crackdown on mining in the second quarter of 2021 left miners no choice but to shut down and move elsewhere. As a result, Bitcoin’s hashrate dropped more than 50% but appears to be recovering.
The upward trend in BTC’s hashrate is caused by a shift from east to west throughout the United States. is the greatest beneficiary. For example, the US share of hashrate rose from just over 4% to 16.8%.
The bearish and neutral relationship between longs and shorts
To to the crypto data provider Santiment:
“The ratio of longs to shorts has continued to fluctuate between bearish and neutral since Bitcoin’s decline in May. The good news about Bitmex’s continued negative contract funding rate is that there is less downside risk to the price of BTC. “
As Bitcoin’s hashrate recovers, it remains to be seen whether this will lead to a price surge as the downside risk continues to decrease.
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