Bitcoin Holds Firmly Above $43K as BTC’s Hash Power Records New All-Time High
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Bitcoin (BTC) traded on a steady sentiment on Sunday as the network experienced a groundbreaking mining record. Reports show that miners dedicating SHA256 processing power to the BTC network cleared a new hash power record high earlier today.
The new hash power record scaled the previous all-time high of 219.5 EH/s by a hairbreadth to record a high of 219.68 EH/s.
This spike comes days after a slump in BTC hashrate due to the recent civil unrest in Kazakhstan. The country, also known for its large crypto miner population, witnessed an intentional internet outage by the government to quell the exacerbating protests. Speculations propose that Bitcoin’s hashrate dropped by 15% due to the unrest, but local miners refuted the claims. That said, data showed that at the time, Bitcoin recorded a steep price drop and mining difficulty upward adjustment contributed to the 15% hashrate drop.
Apart from the price drop and difficulty increase, analysts estimate that the production cost to mine a single BTC today is $34K. Prominent crypto analyst Venture Founder recently explained via Twitter that the production cost is only 20% below the current value. The analyst tweeted that: “The worst dumps bitcoin ever had, were due to miners’ capitulation (Dec 2018, Mar 2020), when bitcoin fell below production costs, it is at risk for miner capitulation,” adding that: “[Bitcoin] was at risk for miner capitulation at $30k in May. The current production cost is $34k, 20% below [the] current price.”
Key Bitcoin Levels to Watch — January 16
BTC has regained stability above the $43K round figure, following several weeks of bearish row. The benchmark cryptocurrency appears to be propped by a combination of support lines on my 4-hour chart, including the 50 SMA, my fourteen-month-long ascending trendline, and my two-month-long descending tripwire. This means that the path of least resistance for BTC is tilted towards the upside, indicating more bullish momentum to come over the week.
However, some uncertainty remains in the market, warranting some caution to placing aggressive bets. We should get a clearer picture of Bitcoin’s stance over the week.
Meanwhile, my resistance levels are at $44,000, $45,000, and $46,000, and my key support levels are at $43,000, $42,000, and $41,000.
Total Market Capitalization: $2.07 trillion
Bitcoin Market Capitalization: $818.3 billion
Bitcoin Dominance: 39.5%
Market Rank: #1
