New Hashrate Peak and Bitcoin Price Outlook

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Bitcoin’s hashrate has surged to an all-time high

Bitcoin’s hashrate has surged to an all-time high, putting increased pressure on miners who are already facing challenges. The network’s “mining power” continues to grow, which is good for its security but not so great for miners dealing with heightened competition.

According to Blockchain.com, Bitcoin’s hashrate reached a new peak on October 12, with 447 exahashes per second. Bitinfocharts reports a slightly higher average of 481 EH/s, but both sources concur that these figures are the highest ever recorded.

Another all-time high for Bitcoin’s hash rate: pic.twitter.com/ERhI5g12Hs

— Will Clemente (@WClementeIII) October 12, 2023

This hashrate has increased by 77% since the beginning of the year and by 170% since the market’s peak in November 2021. This means that mining the next block on the blockchain has become more challenging than ever before. Furthermore, the upcoming difficulty adjustment in the next few days could be as high as +7.4%. Difficulty measures the competition among miners and is currently at an all-time high of 57.3T.

As a result of this, mining profitability, also known as the hashprice, has decreased significantly. The hashprice, referring to the expected value of 1 TH/s of hashing power per day, has dropped to $0.06 per TH/s per day. This represents an 85% decrease from the peak hashprice of $0.40 per TH/s per day during the market’s bull run.

Bitcoin mining companies are now grappling with tripled difficulty levels, low asset prices, and high energy costs. Additionally, JPMorgan predicts a 20% decrease in the hashrate after the next halving in late April or early May.

“Not all miners created equal. Miners vary by scale, operating efficiency, access to capital and growth prospects. We believe CLSK, our top pick, offers the best balance of scale, growth potential, power costs, and relative value. MARA is the largest operator but has the highest… pic.twitter.com/Jj3CseRI6M

— S Matthew Schultz (@smatthewschultz) October 11, 2023

Earlier this week, trader Oliver Velez pointed out that the United States holds the largest global hashrate share at 40%. Moreover, asset management giant BlackRock has invested in some of the largest Bitcoin mining companies, including Riot Platforms, Marathon Digital, Cipher Mining, Hut 8, and Terawulf. They have even provided financing to rescue the struggling Bitcoin mining company, Core Scientific, in December.

The U.S. now has 40% of the #Bitcoin hash rate. Black Rock is now one of the largest owners of publically traded ##BTC miners.

It is clear that the U.S. is playing to win the hashrate war. Despite these numbers seeming large, all publically traded Bitcoin miners combined… pic.twitter.com/2LhVC3BrY1

— Oliver L. Velez ⚡️ 13%’er Bitcoiner (@olvelez007) October 11, 2023

In this context, it’s evident that the U.S. is vying to win the hashrate battle.

Bitcoin Price Prospects

If the price of Bitcoin doesn’t improve soon, another exodus of miners could be on the horizon. The upcoming halving, expected in about six months, will cut mining rewards in half, putting additional pressure on miners. It’s predicted that Bitcoin’s price would need to reach around $90,000 to maintain current levels of profitability.

>>> How Previous Halvings Impact Bitcoin’s 2024 Halving Event?

However, the current market is moving in the opposite direction. Bitcoin remains stable at $26,844 but has lost 4% since the previous weekend. Strong support exists at the $26,000 level, which could be a short-term target.

Steady Bitcoin Price with Bullish Trend:

Bitcoin’s price is consolidating around $26,550. While it may adjust higher, the upward movement could be limited by resistance levels at $27,400 and $27,500.

Bitcoin is trading below $27,200 and the 100-hour simple moving average. A significant downward trend is forming with resistance near $26,200 on the hourly chart.

Immediate resistance is near $26,950, followed by $27,200 and the 100-hour simple moving average. The crucial next resistance could be at $27,400, along with the trendline and the 50% Fibonacci retracement level from the high of $28,285 to the low of $26,551.

Closing above the $27,500 resistance could lead to a stable uptrend towards $28,000. The major hurdle remains at $28,500, where a new bullish trend could commence. In this scenario, the price might climb to the $30,000 resistance.

Further Losses in Bitcoin:

If Bitcoin fails to recover above $27,200, it could face more losses. Immediate support lies near $26,550, followed by $26,500. Breaking below $26,500 and closing below it might lead to further price declines, with the next support at $26,000.

Technical Indicators:

Hourly MACD: The MACD is currently decreasing in the bearish zone.
Hourly RSI (Relative Strength Index): The RSI for BTC/USD is currently above the 50 level.
Key Support Levels: $26,550, followed by $26,500.
Key Resistance Levels: $27,200, $27,400, and $27,500.