Bitcoin Hash Rate Could Diverge With Prices, Threatening 2021 Bull Run

• An analyst has predicted that Bitcoin prices may rise above the current resistance level at $23,800 to $25,500 before dumping below immediate support lines towards $20,000, or worse.
• This prediction is based on the observation that when Bitcoin hash rate records new highs, coin prices tend to retrace as the upside momentum fades.
• According to the analyst, peaking Bitcoin hash rates can diverge with prices, impacting coin valuation.

An analyst has recently made a bold prediction regarding Bitcoin prices in the near future. His prediction is based on data gathered from CryptoQuant, which shows a direct correlation between the Bitcoin hash rate and coin prices. Whenever the Bitcoin hash rate records new highs, coin prices tend to dip as the upwards momentum fades.

The analyst believes that prices may rise above the current resistance level at $23,800 to $25,500 before dropping below immediate support lines towards $20,000, or worse. To support his prediction, the analyst cites the fact that whenever the Bitcoin hash rate increases, more users and mining farms have an incentive to power on their rigs, further pushing up the hash rate. This, however, has the potential to lead to liquidations, which would ultimately unwind mining activity and pull down prices.

On January 26, the Bitcoin hash rate increased to 305 EH/s, a new all-time high. At the current pace, a new level will likely be registered if BTC prices continue to pump. The analyst believes that while there is a correlation between the spot BTC price and hash rate, the opposite could be true. He is convinced that peaking Bitcoin hash rates can diverge with prices, impacting coin valuation.

The analyst believes that investors should be aware of the correlation between the hash rate and the price of Bitcoin, as it could ultimately lead to a decrease in prices. He believes that investors should exercise caution when investing, as the market can be unpredictable. To this end, investors should always do their own research and use the data available to make informed decisions.

SOL Reclaims Bullishness After Rejection: Solana Ecosystem on Path to Ethereum Killer

•Solana’s native token, SOL, has been on a tear since the beginning of 2021.
•Recent on-chain developments have caused the price of SOL to skyrocket, but it is now facing a rejection.
•The Solana Foundation has distanced itself from its former CEO, Sam Bankman-Fried, and the now-defunct crypto exchange FTX, to restore the ecosystem’s bullishness.

The crypto market has been experiencing a surge of activity since the start of 2021, with the Solana ecosystem being no exception. The native token of the Solana blockchain, SOL, has been on a rapid rise, with its price more than doubling in the first four months of the year.

The rise of SOL has been attributed to a number of factors, with the most prominent being on-chain developments. One of the most notable developments was the launch of BONK, a token that runs on the Solana network. The launch of BONK caused the usage of the Solana network to skyrocket, leading to increased demand for SOL.

However, SOL’s climb up may have been hampered by the fears surrounding its former CEO, Sam Bankman-Fried, and the now-defunct crypto exchange FTX. To restore the confidence of the market and distance itself from these factors, the Solana Foundation commissioned the Messari overview, an independent report detailing the relationship between the Solana Foundation, Sam Bankman-Fried, and FTX.

Since the release of the Messari overview, SOL has been on a steady climb, with its total market cap surpassing $7.6 billion as of May 14th. Despite the current rejection, Solana’s native token looks to be on the path to regaining its bullishness, with many believing that the ecosystem is an “Ethereum killer” due to its low transaction fees and its capability to go through thousands of transactions per second.

The Solana ecosystem is one of the most promising projects in the crypto space, and its native token has been performing admirably since its launch. The recent rejection may have caused a slight dip in the price of SOL, but with the confidence of the market restored by the Messari overview, the token looks to be on its way to reclaiming its bullishness.

Bitcoin Leads Crypto Market Rally, Market Cap Above $335 Billion

• The crypto market has been rallying, with Bitcoin leading the charge by breaking multiple resistance levels and tapping into the $17,000 zone for the first time in a month.
• Bitcoin’s market capitalization is now above $335 billion, higher than the market cap seen on BTC late last year.
• Tuesday was when BTC made a significant move of about 1.5%, the highest daily gain since December 20, 2022.

The crypto market has been on an upward trend in recent weeks, led by Bitcoin, the largest crypto by market cap, breaking multiple resistance and climbing higher and higher. After falling below the $17,000 zone following the FTX crash and the onset of the bear market, Bitcoin stayed there for a while, but since the start of the new year, the Bitcoin market has been making positive moves. As of writing, Bitcoin is trading at $17,409, after having tapped into the $17,000 zone for the first time in almost a month.

Tuesday saw Bitcoin make a significant move of about 1.5%, the highest daily gain since December 20, 2022. This has pushed Bitcoin’s market capitalization higher than the market cap seen on the coin late last year, and is now above $335 billion. This is a good indication that the crypto market is on an upward trend and that Bitcoin is leading the charge.

Analysts are optimistic about Bitcoin’s future and are predicting that the coin will continue to rally in the coming weeks and months. This could be great news for investors, as it could mean higher returns for those who invest in Bitcoin. Additionally, the increasing price of Bitcoin has seen a lot of attention from mainstream investors, which could be beneficial for the crypto market as a whole.

For now, the crypto market is in a bullish state and Bitcoin is leading the way. It remains to be seen how much higher Bitcoin can go and how much more investors can gain from their investments. But, one thing is certain: the crypto market is on an upward trend and it looks like it will continue to climb higher.

Crypto Bear Market: Altcoins See Deeper Retracements than Bitcoin and Ethereum

• Bitcoin has fallen by 78% and Ethereum by 82% during the current bear market in crypto.
• Other altcoins have experienced deeper retracements of up to 96% or more.
• Elliott Wave International Currency & Crypto Analyst Jason Soni explains why this discrepancy exists.

The current bear market in the cryptocurrency space has been particularly brutal. The world’s largest digital currency, Bitcoin, has seen its price plummet by 78%, while Ethereum, the second-largest cryptocurrency, has fallen by a staggering 82%. However, the losses experienced by other altcoins have been even more severe, with some retracements reaching up to 96% or more.

In a recent video, Elliott Wave International Currency & Crypto Analyst Jason Soni has shed some light on why this discrepancy exists. According to Soni, newer altcoins in their first cycle will see the deepest retracements. This makes sense, as cryptocurrencies mature and go through more boom and bust cycles, retracements become less steep. This can be seen with Bitcoin and Ethereum, which suffered a 78% and 82% retracement from peak to trough respectively.

On the other hand, altcoins such as Cardano, Solana, and others have experienced much deeper retracements. Cardano, for example, has suffered a 92% collapse compared to the top two cryptocurrencies. Solana, once pegged to disrupt Ethereum, dropped by a staggering 96%.

Soni believes that this is due to the fact that these altcoins are in their first cycle and have yet to experience a boom and bust cycle. As these altcoins mature, their retracements will become less severe, and they may experience more moderate corrections such as those seen with Bitcoin and Ethereum.

Overall, the current bear market has been particularly punishing, and while some digital assets have suffered more than others, all crypto assets have been affected in some way. Elliott Wave International Currency & Crypto Analyst Jason Soni has offered some insight into why some crypto assets have crashed more than others, and what this could mean for the future of the crypto market.

Bitcoin Mining Difficulty Drops Sharply, Fewer Miners on Network

• Bitcoin mining difficulty recorded a sharp drop of 3.6% in the early hours of Tuesday.
• This took the mining difficulty from 35.36T to 34.09T following the adjustment.
• The lower mining difficulty means there are fewer miners on the network.

The bitcoin mining difficulty saw a significant drop on Tuesday morning during Asia hours. According to data from CoinWarz, the mining difficulty fell almost 3.6% in a sharp downward correction. This adjustment took the mining difficulty from 35.36T to 34.09T.

The mining difficulty of Bitcoin is an important metric as it measures how much power is needed to verify transaction blocks on the network. The higher the figure is, the more demand it shows for the Bitcoin network. On the other hand, a lower mining difficulty means there are fewer miners on the network.

The recent drop in mining difficulty could be due to the blizzard that swept through the United States in January 2021. The extreme cold temperatures forced miners to disconnect their machines in an effort to free up the energy grid and provide enough power to citizens for their homes.

The effects of the mining difficulty on the price of Bitcoin have yet to be seen. Despite the sharp downward correction, the digital asset is still stagnating in the mid-16,000s. It remains to be seen whether the lower mining difficulty will have any long-term impacts on the price of Bitcoin. Only time will tell.