As we move towards Monday, Bitcoin (BTC) is not leaning towards the CME closure but is veering towards deeper lows. Bitcoin, lingering at $77,000 at the time of writing, could potentially see lower wicks to $73,000 and below if it closes under Strategy’s cost region.
Bitcoin (BTC) Hash Rate
The anticipated attack on Iran has not occurred, resulting in no current movement in the region. Recently, Trump expressed his hope for reaching an agreement with Iran. While U.S. sources suggest an attack could start anytime, it seems there are no immediate plans.
The On-Chain Mind account, dissecting network data, explains the abnormality of our current period by comparing hash rate figures and previous trends.
“We observed a 16% decrease in Bitcoin’s hash rate, marking the most significant drop since the 2021 China mining ban.
Movements of this magnitude do not unfold in stable, comfortable environments. They reflect the actual stress on miners, mandatory adjustments, and periods when ineffective hash power is lost before the network regains stability.
Historically, substantial declines have often presented buying opportunities.”
Benjamin Cowen points out that cryptocurrency investors often invent stories to justify their bullish beliefs, which he thinks is misleading.
“One of the biggest mistakes made by many investors hoping for a surge in cryptocurrency interest is their inability to express a contrary opinion clearly. When expectations don’t manifest within their timeline, they adjust the timeframe, citing different reasons.
Last year, it was due to M2 and BTC needing to follow M2 (even though BTC always peaked before M2). This year, many are using the ISM index as they did M2 last year. Regardless of your position, you can always find a narrative to support it.
It’s crucial to recognize this as merely chasing narratives. Stories follow price; not the opposite. You can build a story from price trends, but not vice versa. Unfortunately, since mania predictions often go unquestioned, many end up with unnecessary investments, preoccupied with following every promising narrative. My advice is to stop focusing on narratives and concentrate on real market price trends. You’ll likely conclude that news is insignificant and stories follow price.”
Top 100 Altcoins RSI
DaanCrypto, an analyst using a pseudonym, shared the RSI status of the top 100 altcoins by market capitalization, indicating that the downtrend persists. In the weekly period, the RSI status clearly shows weak interest, although most altcoins have not yet entered the oversold area.
This is negative for most altcoins, indicating that many could experience further losses, except for a few like ASTER. Most cryptocurrencies remain in the fear zone.
