Bitcoin and the $21.4K Price Level
Bitcoin started the week at $21.185, and struggled with major resistance at $21.4K, while the market dominance adjusted from 41.2% to 41%. The peak for Monday stopped at $21,360 over the course of the 2-day chart.
Kazakhstan’s Bitcoin Mining Hash Rate Declines
According to an analysis released this week by ClimateTech Vice Chair Daniel Batten, Kazakhstan’s contribution to the global Bitcoin (BTC) hash rate has dropped to 6.4% since the first quarter of 2022, leading to a 10% decrease in the network’s carbon emissions, according to ClimateTech Vice Chair Daniel Batten’s recent analysis. Zero-emission energy sources make up 52.2% of the network’s energy consumption. Kazakhstan, meanwhile, only contributes 6.4% to the global hash rate.
U.S Producer Price Index Impacts the Price of Bitcoin
Bitcoin dropped 4% to reach a low of $20,400 after the U.S. Producer Price Index (PPI) reported results better than anticipated. In December 2022, the year-over-year Producer Price Index (PPI) was 6.2%, lower than the predicted 6.8%. This data indicated a decrease in inflationary pressure, allowing the Federal Reserve to slow its current rate of an interest rate increase. The Producer Price Index (PPI) tracks changes in the prices that producers pay for goods and services. It is often used as a predictor of consumer price changes.
Retail Investors Are Showing an Increased Interest in Bitcoin Relative to Institutional and Professional Traders.
ATZCrypto analysis revealed a stark difference between Bitcoin and Ethereum Spot to Futures Volume (SFV) trends, with Bitcoin’s SFV continuing to increase. SFV tracks the ratio of spot volume to futures volume for a given cryptocurrency. The spot price is the quote for the immediate purchase of the currency, which serves as the foundation for all derivatives markets. High spot volume indicates healthy accumulation and supports sustainable price growth. The Bitcoin SFV has remained between 0.2 and 0.4 since January 2020. However, last summer it surged above this range, reaching a peak of nearly 0.7 this week.
Bitcoin’s Daily Price Analysis
Bitcoin is trending positively today. Prices have increased from $22,688 to $23,722, with a high of $23,089. The bullish momentum that began yesterday has allowed the BTC/USD pair to break above the $23,000 level, a major goal for bulls who have been supporting levels around $22,688. Price correction has pushed the range up to its current level.
Bitcoin (BTC) buyers are focused on reaching the next target of $23,500. However, there are numerous obstacles to overcome before that level is attained. The price range is currently limited and BTC needs to generate additional momentum for a breakout. The market capitalization is currently at $444 billion with a 24-hour trading volume of $33 billion, signifying strong buying demand.
Bitcoin’s one-day price chart indicates a bullish momentum has been in effect, as the currency is currently trading at $23,039. This is a 2.05% increase from its recovery of $22,688. Despite yesterday’s downtrend, the bulls have regained lost ground and pushed BTC/USD above the $23,000 level.
Conclusion
Analysis of Bitcoin’s price suggests that BTC/USD could further increase towards $23,500 in the near future. If bulls can maintain the $23,000 level, they will preserve the bullish momentum. Additionally, bulls must protect the $22,688 level to sustain the bullish trend. The next resistance is at $23,500; a break above this could lead to a strong jump in prices in the days ahead.
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