Bitcoin price’s upward trend has been cut short as tensions between China and the United States picked up the pace with the US House Speaker Nancy Pelosi visiting Taiwan. The popular cryptocurrency returned below the $23,500 mark. It had previously held the mark as support and was attempting to breach the resistance for $24,000.
At the time of writing this article, Bitcoin was trading at $23,137 – up by 1.06% in the last 24 hours. Ethereum gained 1.85% and is changing hands at $1,651. During Tuesday’s session, BTC was at $22,710 and rallied to the highs of $23,446 on Wednesday, then dipped as geopolitical sparks flew.
Macroeconomics continues to shake the crypto market time and again With global markets reacting to geopolitical tensions, volatility is pushing Bitcoin back towards its recent resistance level. But analysts say the popular cryptocurrency will attempt to reach the $24,200 region. This could most likely be the next target for the bulls, that is if the momentum extends throughout the remainder of the week. Moreover, price strength has rebounded, and the 14-day relative strength index (RSI) is hovering above the floor, tracking at 56. Edward Moya, a senior market analyst at Oanda, believes that Bitcoin needs a crypto-specific catalyst to trigger a meaningful move above the crucial $24,700 level.
Meanwhile, BTC’s hash rate as per Arcane Research has risen following the largest decrease in the mining difficulty in one year. Hashrate measures the total amount of computing power connected to the Bitcoin network. Higher rates give a faster performance of the blockchain and a larger degree of decentralization. It also means stronger security. The Bitcoin network tries to maintain a constant block production rate, in other words, it tries to keep the transactions per day fixed. When the hashrate fluctuates, the block rate does so as well. When some miners disconnect from the network, the rate of hashing transactions slows down.