Bitcoin Just Reached the $7,600 Price by Showing Two Significant Recovery Signs
Significant Sign Number One – Bitcoin miner capitulation is not visible as yet
Although the Bitcoin price has regained its position over the last five days, it does not indicate the bitcoin miner capitulation, as a majority of the community already thought. The main network of Bitcoin has obtained and updated the hashrate record by pushing away all tensions and rumors about miners capitulation and BTC sell-off. The current cryptocurrency market is showing opposite trends and movements, albeit experts predicted the significant drop.
The community of miners wasn’t satisfied by the fact that the Bitcoin price plunged to the $6,500 level, which made the majority of them to re-evaluate their activity. The signs of early bitcoin miners capitulation could have appeared before the upcoming May 2020 halving.
Given that the cryptocurrency market is reacting better to news and trends than in previous years, the BTC price has retained a vital support level determined by major crypto traders. Upon the recovery of the price, the network’s hashrate demonstrated new highs.
However, it is essential to remember that the possible capitulation may occur when the majority of miners start selling their equipment due to the low Bitcoin price.
Significant Sign Number Two – Strong Technicals
Of course, we cannot miss the technical analysis to understand what is going on with the Bitcoin and why it forces many traders and investors to forget about upcoming holidays. According to expert analysts and traders, the weekly candle’s closure was the main thing to analyze.
Just seven days ago, the majority of the crypto community couldn’t miss the fact that BTC plunged to the $6,000 area. Moreover, some traders and analysts evaluated the vulnerability of this price level, stating that the free fall to lower levels is possible. This idea was supported by the panic around the Chinese-based scam and bitcoin mining equipment sell-off.
Fortunately for many crypto investors and traders, the strong oversold has returned Bitcoin to a better place, reversed the candle, and held the green level of $7,509.
According to this candle, the major issue was a decreased funding rate on cryptocurrency exchanges. In a nutshell, most traders focused on shorts rather than longs. It is quite possible that the shorts trend was driven by several opinions of crypto influencers and experts, who predicted the only one possible way for Bitcoin – the drop.
The domination of short contracts put short-traders in the situation, where such contracts would be under the market pressure. In other words, short-sellers would be forced to close their positions. Such a statement was supported and explained by Josh Rager.
Despite all the negativity amongst the community members, Bitcoin is now holding a comfortable position around the $8,000 area. The vital factor to mention that BTC managed to evade the more significant drop to the $6,000 level.