Bitcoin prices are resilient, firm against the wave of intense selling pressure, and stabilizing within the trend-defining bar of early this week.
Presently, the coin is stable and near break-even with the USDT in the past trading week. Bitcoin is within a bear breakout formation despite general optimism amongst traders, following the break below $40k on April 26.
Bitcoin Hash Rate at New Highs
Nonetheless, Bitcoin’s adoption and on-chain developments in the past few days and months are a net positive and immensely bullish.
For instance, even as prices consolidate back within the range defined by the wide-ranging bear bar of April 11, Bitcoin’s hash rate is at new all-time highs.
Bitcoin Hash Rate reaching new all time highs.
The demand to mine BTC is relentless and thus the network is more secure than ever before. pic.twitter.com/ArFG91QN0a
— Will Clemente (@WClementeIII) April 28, 2022
Technically, this is divergent from expectations since the hash rate is usually a factor of price. In the current state, prices are depressed, but miners are channeling hash rate, pointing to their confidence.
The Central African Republic Makes Bitcoin Legal Tender
While global users bulwark the Bitcoin network, more governments are realizing the benefits of aligning with what is a new financial order spearheaded by Bitcoin and the community.
Following El Salvador and Panama paths, the government of the Central African Republic has approved Bitcoin as legal tender. The country’s president is optimistic that cryptocurrencies will benefit its citizens.
HUGE BREAKING NEWS – The Central African Republic has unanimously passed a bill to adopt #Bitcoin as legal tender.
— Dennis Porter (@Dennis_Porter_) April 24, 2022
In the U.S., the city government of Fort Worth became the first to set up Bitcoin mining rigs in a pilot program. If successful, the city’s mayor will allocate funds to the project—an overwhelming endorsement for Bitcoin and cryptocurrencies.
Bitcoin Price Analysis
Bitcoin prices are stable at spot rates.
However, BTC is within a bear breakout formation following the sharp losses of April 26. Currently, BTC bulls are yet to rewind losses.
As a result, bears have the upper hand. As such, aggressive traders may unload on peaks aligning with the trend defined on April 11 and confirmed on April 26. This is provided prices are below $40.5k.
If bears succeed, the coin may tank back to below this week’s lows at $37.7k towards $35k—or worse in the immediate term. The drawdown will be in continuation of the bear trend set in motion in early April.
Conversely, if bulls close above $40.5k with rising volumes unwinding the losses of April 26, the bearish outlook will be nullified. The formation may set the trend for a race back to $45k—or better.
Technical charts courtesy of Trading View.
Disclaimer: Opinions expressed are not investment advice. Do your research.
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