Bitcoin (BTC) At 6-week Low Increased Hash Rate by 55% Adoption Despite Downtrend

Jerome Powell, US Fed Chairman signalled aggressive rate hikes to deal with rising inflation.  The war crisis dented the sentiments further.  However, the total cryptocurrency trading volume increased by 26% to 68.35% billion on Monday.

Ichimoku Cloud and Bitcoin Price:  Bitcoin fell below its Ichimoku cloud “support” on the weekly chart.  Ichimoku Cloud is a technical analysis indicator, which includes multiple lines, that help define the support, resistance, momentum, and trend direction.  Day traders and scalpers use Ichimoku on a shorter timeframe ranging from a 1-minute chart, up to six hours.

Ichimoku cloud displays the market trend, support and resistance levels, entry and exit points on the same chart and therefore it is considered to be one of the leading indicators.  The “Ichimoku Cloud” and the “Ichimoku lagging line” are used to identify the momentum carrying forward, therefore, to decide on the future support and resistance. To maximize risk-adjusted returns, this indicator is used in combination with other technical indicators.  Ichimoku cloud “support” falling down means the declining momentum might carry forward.

Bitcoin Trending at a 6-week low:  Fundamental factors like user growth and network usage are the driving factors of Bitcoin; however, Macro-relationships in terms of “short-term business cycle” and “long-term economic growth” are also evolving for bitcoin.

Central African Republic Accepting Bitcoin:  The major tokens are all in a downtrend. Despite, the overall market going down south and bleeding red, Central African Republic has passed a law accepting Bitcoin as a legal tender. Of late, Bitcoin has been strongly correlated to the dollar.  And BTC continues to be in the middle of trading range.

So, Ultimately, is Bitcoin Valuable? Where Does the Intrinsic Value of Bitcoin (BTC) come from? There is no element of trust or supply-demand metrics for Bitcoin.  Bitcoin’s value is determined by factors like decentralization, scarcity, security, and systems of trust based on the immutable record or transactions without relying on central authorities blockchains give the users the power and freedom.

Increase in Bitcoin Hash Rate:  The mining difficulty for Bitcoin is expected to increase in the forth coming week.  Mining difficulty is a measure of how difficult it is to mine a Bitcoin block – it makes it difficult to find the right hash for each block. The Hashpower has increased by 55% since January.

Looks like things are going nowhere fast for Bitcoin.  The next expectation and hope is for Bitcoin ETF to be approved by the SEC – firing up the rocket engines.