Bitcoin Price Analysis: BTC/USD closes in on $8k as mining hashrate hits 2020 all-time high
|- Bitcoin hashrate growing significantly as miners increase activity in anticipation of the May 2020 halving.
- Bitcoin brushes shoulders with $8,000 amid revived interest geared towards breaking critical barriers in 2020.
Bitcoin is concentrating on breaking key barriers towards $8,000. The largest cryptocurrency spent most of December in consolidation between $7,000 and $7,500. The recent break above $7,800 seems to have revived the buyers’ interest in the digital asset. Besides, Bitcoin tested $8,000 resistance on Monday before retreating to the current $7,916.
The Bitcoin community is counting the months before the historic halving event takes place. The mining rewards halving occurs every four years due to code integrated in the blockchain by Satoshi Nakamoto. Miners' rewards per block will be slashed by half from 12.5 BTC to 6.25 BTC. The event is expected to bring with it increased demand amid scarcity of supply and high volatility.
Meanwhile, Bitcoin’s hash rate continues to surge before the May 2020 halving. The hashrate measured on a seven-day basis hit an all-time high of 106 EH/s. Bitcoin’s network hashrate recovery has been tremendous over the past year from 40 EH/s at the beginning of 2019.
Bitcoin price technical analysis
Bitcoin's prevailing trend is bullish and supported by the upward-pointing RSI. The indicator has recovery impressively from 2020 low at 28.57 to levels above 70. If the price continues to ignore the RSI’s oversold conditions, BTC could easily sail above $8,000.
As far as support is concerned, $7,500 is the key support likely to come in the bull's recue in the event of a reversal. The 50 SMA and the 100 SMA on the 4-hour chart are inline to offer support as well. In addition to that $7,000 and $6,500 will come in handy especially if Bitcoin bears swing in with a revenge mission.
BTC/USD 4-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.