Cryptocurrency market today managed to see a solid bearish breakout today following six consecutive trading sessions of positive price action. The positive price rally which began last Friday saw Bitcoin and major legacy cryptocurrencies trade positive and move above critical price levels. Having breached critical price levels, major crypto coins saw bulls consolidate their hold over recent gains before starting further upside price action. However, bulls lacked necessary trigger and strength in the form of fundamental support to help facilitate a breakout rally. Meanwhile, the crypto market saw many bearish news and updates piling up over the last couple of days which caused bears to gain strength in fundamental perspective.
Increased Mining Activity Is Welcome Update Amid Bear’s Grip On Market
While Bitcoin & legacy crypto coins opened for the day on a positive note, bears finally managed to gain solid hold over momentum. This caused Bitcoin and legacy cryptos to decline below critical price levels and consolidate near intra-day lows. All legacy crypto coins saw nearly 2% decline in value while Bitcoin declined by 1% on the day. As of writing this article, BTCUSD pair is trading at $3987.2 down by 1.01% on the day, while ETHUSD pair is trading at $135.71 own by 2.19% on the day. While the price of major crypto coins fell below critical price levels, they are still trading above major support levels that will help them rebound and re-establish a positive price rally if bulls regain fundamental strength and necessary trigger to make a breakout price rally. According to news circulating in the market, Bitcoin hashrate rose to a four-month high of more than 52 quintillion hashes per second.
This suggests that the mining activity of Bitcoin is seeing an increase which is positive news and could add strength to bulls from a fundamental perspective. The cryptomarket which is decentralized in nature gains momentum based on major news and events which could act as a source of strength. Following recent decline and abandonment/closing shop of major miners and traders owing to cryptomarket seeing historic slides, an increase in hashrate which hints at increased mining activity is welcoming news. Increased mining suggests that parties involved expect the price to go higher and are aiming to gain profit of their attempts. An increased participation inf cryptomarket with hopes for solid gains and increased adoption of crypto coins in the real world is positive news for bulls from a fundamental perspective. This suggests that while bears may have regained control of momentum, for now, bulls are likely to regain control in near future trading sessions.
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This article was originally posted on FX Empire
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