Bitcoin Falls Even As Hash Rate Steadily Recovers, Breakout above $72,000 Crucial

Bitcoin extended losses yesterday, plunging below $68,000 as bears pressed on, reversing gains of May 20. Even with the series of lower lows, the path of least resistance, at least when looking at the candlestick arrangement in the daily chart, is upwards. Overall, buyers are in control, especially if the zone between $66,000 and $68,000 holds, soaking up attempts for bears to rewind this week’s gains.

Following the state of price action in the daily chart, Bitcoin is under pressure at spot rates. The coin is down 3% on the last day but up 24% in the previous trading week. The uptrend remains as long as the $66,000 and $68,000 support zone remains. For this reason, traders should also watch participation as prices gyrate inside the May 20 bull bar. In the previous 24 hours, it stood at a decent $43 billion.

Bitcoin daily chart for May 24

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So far, the following Bitcoin news events are worth tracking:

  • Yesterday, the United States House of Representatives passed the H.R.5403 – CBDC Anti-Surveillance State Act. What this means is that the country won’t proceed to launch CBDCs. Representatives cited privacy concerns associated with the mass rollout of this product by central banks.
  • Even with the drop in hash rate—a measure of Bitcoin’s computing power—the network is recovering. The reading stands above the 632 EH/s level, which is around the multi-month high.

Bitcoin Price Analysis

Bitcoin is under pressure, looking at the performance in the daily chart.

Despite the weakness, the BTC/USD price is technically in an uptrend. Notably, prices are still inside the May 20 wide-ranging bull bar, pointing to strength.

At the same time, bears have failed to wipe out May 20 gains. The series of recent lower lows are with light trading volume as well.

Aggressive traders can buy on dips above the $66,000 support area. Conversely, risk-on traders can wait for a clean break above $72,000 before considering longs.

In both cases, the first target will be the March 2024 all-time high of $73,800.

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Dalmas Ngetich
Dalmas Ngetich
Technical Analyst and News Reporter
Dalmas is a technical analyst and news reporter covering Forex, commodities, crypto, NFTs, blockchain, DeFi, and blockchain.
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