Bitcoin price crashed late Tuesday, losing over $1,000 in more than an hour. BTC has dropped over $1,200 in the last 24 hours, and investors are wondering where the next stop is.
Descending Triangle Turns Bearish Indeed
Bitcoin has moved within a descending triangle, a pattern known to act as a bearish signal in technical analysis. However, some investors hoped that BTC would break up the resistance line, especially after the cryptocurrency has seen several highs moving higher than the upper line of the pattern.
Bitcoin’s hash rate has tumbled about 40% on September 23, which is a record. The crash remains unexplained and surprising, given that the hash rate used to move upwards and update the record high again and again. This measure shows the mining difficulty, as the competition among BTC miners is increasing.
The answer might come from China, the home of several dominant mining entities. We reported that China was planning to remove crypto miners from its territory. However, the process hasn’t officially started yet.
Interestingly, the flash crash in the hash rate coincides with the UN Climate Action Summit, which took place from September 21 to 22. The event might have put pressure on miners, who often rely on dirty energy to generate new blocks.
Do you think Bitcoin price will break below the $8,000 level soon? Share your expectations in the comments section!
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