Bitcoin bounces off six-week low

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