Miners may hit pause on the good times for BTC price action, according to one theory, as the weekend promises support tests.
Bitcoin (BTC) climbed back to $20,500 at the Oct. 28 Wall Street open as United States equities sought a stronger finish to the week.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bets that $20,000 will fail as support increase
The atmosphere was volatile after tech stocks suffered a major out-of-hours rout, with Bitcoin managing to avoid sustaining knock-on losses to the same extent.
At the time of writing, the S&P 500 and Nasdaq Composite Index were both up around 1.3%.
“In this current range bound phase after a prolonged downtrend,” popular trader CryptoYoddha summarized to Twitter followers.
“Smart money/Institutional players aim to build up or take positions without significantly increasing the price. I’m feeling bullish.”
Economist, trader and entrepreneur Alex Krueger, meanwhile, laid out a likely scenario for the days ahead. Crypto, he argued, could retest recent lows before rebounding into important news from the Federal Reserve next week.
“Thinking crypto lower tomorrow together with stocks, some late Friday hedging, quiet weekend, ETH mid to low 1400s, BTC mid 19000s get bought, then ride higher with the FOMC next week,” part of a tweet read.
Markets have quietened considerably since Bitcoin hit six-week highs, with Cointelegraph reporting on the extent of short liquidations executed as a result.
Miners are the “biggest intra-Bitcoin risk” to the market
Looking at what could puncture the bullish mood outside of the macro, crypto research firm Reflexivity Research placed a special focus on miners.
After major mining firm Core Scientific warned of liquidity problems, concerns over mining profitability in the face of an exploding hash rate continued to surface.
As Cointelegraph noted, theories over why the hash rate was diverging so much from the spot price even included Russia seeking to corner the industry.
“Miners remain the biggest intra-Bitcoin risk to the market in our view,” Reflexivity confirmed on the day.
“Meanwhile; from a technical standpoint, $BTC looks to reach long territories here,” he added about BTC price action.
“Sweeping the low and should hold around $19.9K. If that doesn’t grant support, then I’m looking at $19.6K.”
Data from BTC.com showed the hash rate at around 257 exahashes per second, with the difficulty due to undergo a slight decrease at the next adjustment, still nine days away.
Bitcoin network fundamentals overview. Source: BTC.com
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