Bitcoin price has bounced to $43,000 from the 1-1/2-month low of $40,200 reached early today on hopes that the fallout from indebted developer China Evergrande Group might be contained. Also recent on-chain data lifts market sentiment. According to Glassnde Bitcoin miners are accumulating as the network hash rate continues to recover. Recent data showed that miners stockpiled 14,000 BTC worth roughly $600 million since February. The report also noted that the bull markets of 2020 and 2021 have seen miners hold onto a larger portion of their rewards than in previous market cycles. Miners typically sell BTC to cover their expenses, including electricity and equipment. Bitcoin hash rate jumped from a local low of 90 Exahashes in late June to 137 Exahashes but still remains 34% below the record high of 184 Exaches last seen in May.
Miners continue to accumulate Bitcoin as the network's hash rate recovered this past quarter. Source: glassnode
Bitcoin price dipped to $40,200 level during the Asian session but the resurgence of buying pressure pushed it back. Price is approaching major resistance at $44,000 which coincides with 38.2% Fibonacci retracement of the last upward wave and previous price reactions. Should a break higher occur, then upward move may accelerate towards the next resistance at $47,000. Source: xStation5
The content of this report has been created by X-Trade Brokers Dom Maklerski S.A., with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. X-Trade Brokers Dom Maklerski S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.