This is despite the price of BTC continuing to struggle at the $10k psychological level
Short-term, Bitcoin looks bearish
Bitcoin (BTC) has set a new milestone in terms of hash rates. According to the team at Unfolded, Bitcoin’s hash rate has reached another all-time high. The team informed the crypto-verse regarding the new Bitcoin milestone via the following tweet.
BTC Miners Unfazed by the Current Crypto Market Downturn
Additionally, the team at Coinmetrics also captured the activity surrounding the Bitcoin network and concluded that BTC miners are unfazed by the current crypto market downturn.
#Bitcoin miners seem unphased by the recent drawdown in markets, continuing to produce hashes at record high levels…the CMBI Bitcoin Hash Rate Index indicates miners are conducting >130 EH per second
Short Term, Bitcoin is Bearish
When it comes to Bitcoin’s market action, veteran Bitcoin analyst, Willy Woo, has provided a brief analysis of the current BTC market turmoil. According to Mr. Woo, Bitcoin’s on-chain fundamentals could switch bullish in the weeks to follow. He also cautioned against declaring a Bitcoin bottom too soon but at the same time, mentioned that the current $10k levels might worth considering as a level to get back in.
Mr. Woo made the commentary on Bitcoin’s market activity via the following tweet.
Local on-chain switching bullish (looking at the next few weeks out), not calling this has bottomed, even though it may have. Playing the big swings it’s not a bad time to buy back in.
Chiming in on Mr. Woo’s analysis, Bitcoin’s weekly chart is still showing some weakness. Given the fact that the holiday season is around the corner, Bitcoin could be in for a short-term bear cycle reminiscent of the fourth quarters of both 2018 and 2019.
In the fourth quarter of 2018, we saw Bitcoin drop from $6k levels in October to a local bottom of $3,150 in December of the same year. Bitcoin would go on to print a local top of $14,000 in June 2019.
With respect to the fourth quarter of 2019, November found Bitcoin trading at $9,000. By mid-December, Bitcoin was trading at $6,300 and rebounded to $10,500 in February 2020 before the Coronavirus crash of mid-March.
Therefore, the fourth quarter of 2020 might experience a similar pattern where Bitcoin finds a local bottom in mid-December in preparation for a drive up in the first quarter of 2021.
As with all analyses of Bitcoin, traders and investors are advised to used adequate stop losses and low leverage when trading Bitcoin on the various derivatives platforms.