The cryptocurrency market last week registered high volatility, causing some digital assets to lose over half of their value within hours. Bitcoin itself plunged to $49,000 and then recovered shortly after.
Now, the price of Bitcoin fluctuates at levels between $59,000 and $61,000, showing a recovery of value lost last week. This period is relatively calm after one of the most turbulent phases in the market.
Veteran Trader Peter Brandt’s Bitcoin Analysis
Peter Brandt, a chart trader with nearly five decades of experience, has recently come clean regarding his opinion on the current state of Bitcoin. From Brandt’s perspective, Bitcoin is in the process of developing an expanding triangle pattern that is indicative of future price action.
However, Brandt has suggested that traders should wait for the breakout of this pattern before entering trades. During periods of economic uncertainty, he emphasizes the need to stick to firm signals rather than engaging in speculation.
Differing Views on Bitcoin’s Future Movements
While Brandt is still quite conservative in his estimates other market participants have offered more bullish expectations. Others believe that Bitcoin could be preparing for a breakout and if that is the case, the price could surge to $70,000.
On the other hand, a rather different opinion from the market shows an extremely strong bullish outlook in which Bitcoin may rise to $100,000. This perspective regards the present structure as a descending channel rather than an inverted triangle. From this analysis a false breakdown of this channel is possible and a strong rebound could take prices towards the $68,000 or even higher.
The discussion of where Bitcoin is heading remains open as new strategies of chart analysis are applied to its price movements. The most recent ‘capitulation candle’ as pointed out by another analyst may mean a change of direction for the price of Bitcoin. However, according to Brandt, one should not trade without a confirmed breakout.
Bitcoin Hashrate Reaches New Record High
In other news, the hashrate of Bitcoin has rebounded and reached a new all-time high of 627 EH/s after falling to a low of 8.5% drop. This rise is evident despite the decreasing profitability for miners, meaning that the Bitcoin network is only getting stronger in terms of computational power.
The increase in hashrate happened shortly after a halving event that usually is unfavorable for the miners’ revenue. This demonstrates the interdependence between the development of mining technology and market conditions.
Also, the Bitcoin mining industry has a challenge with a negative difficulty adjustment of approximately 4%, expected to occur on August 14. This update aims to rewrite the mining difficulty according to the current network situation. It might help alleviate some of the problems currently affecting the miners. However, it captures the present challenges, especially after the BTC price drop in July which affected many ASIC miners.
Consequently, the revenue from Bitcoin miners fell to the year’s lowest at around $2.5 million on Sunday. This reduction in revenue shows the nature of mining economics where the revenue is mainly dependent on the market price.
