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Why Bitcoin Needs To Clear $64K For Hopes of a Fresh Rally

Bitcoin price started a fresh increase from $60,000 against the US Dollar. BTC is back above $62,000, but it must clear $64,000 for hopes of a fresh rally.

  • Bitcoin recovered losses and was able to climb above the $62,500 resistance.
  • The price is now trading above $62,000 and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance near $63,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a steady increase if there is a close above the $64,000 resistance zone.

Bitcoin Price Eyes Fresh Rally

Bitcoin price dipped below the $60,000 level, but downsides were limited. BTC traded as low as $59,610 before starting a fresh increase. The price was able to rise above the $61,000 and $61,200 resistance levels.

There was a recovery wave above the $62,000 and $62,500 levels. Bitcoin even spiked above the 50% Fib retracement level of the downward move from the $66,980 swing high to $59,610 low. The price is now trading above $62,000 and the 100 hourly simple moving average.

It is currently facing resistance near the $63,000 and $63,200 levels. There is also a major bearish trend line forming with resistance near $63,200 on the hourly chart of the BTC/USD pair.

The main breakout resistance is now forming near the $64,000 level. It is near the 61.8% Fib retracement level of the downward move from the $66,980 swing high to $59,610 low.

Source: BTCUSD on TradingView.com

A clear break above the trend line resistance and then $64,000 may possibly call open the doors for a move towards the $65,000 level. The next major resistance sits near the $66,500 level.

Fresh Decline In BTC?

If bitcoin fails to clear the $64,000 resistance zone, it could start a fresh downside correction. An immediate support on the downside is near the $62,200 level.

The first major support is now forming near the $61,500 level and the 100 hourly SMA. A break below the $61,500 support may possibly push the price towards the $60,000 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $62,200, followed by $61,500.

Major Resistance Levels – $63,000, $63,200 and $64,000.

Most Public Bitcoin Miners Are Thriving

Five public miners produced a total of 1,475 bitcoin in November, worth nearly $80 million. The bitcoin mining industry is booming, and public miners are employing all their efforts to increase daily production and refrain from selling. Marathon Digital, Hut 8, Riot Blockchain, Bitfarms, and HIVE produced a combined total of 1,475 BTC in November,::Listen

Five public miners produced a total of 1,475 bitcoin in November, worth nearly $80 million.

The bitcoin mining industry is booming, and public miners are employing all their efforts to increase daily production and refrain from selling. Marathon Digital, Hut 8, Riot Blockchain, Bitfarms, and HIVE produced a combined total of 1,475 BTC in November, worth nearly $80 million at the time of writing.

Bitcoin miners outside of China started enjoying increased profits as the communist country announced its crackdown on the industry. In the summer, the activity was banned entirely from Chinese soil, leaving no other option for miners than to relocate operations abroad. In the meantime, overseas companies in the industry started benefiting greatly from a decreased Bitcoin total hashrate, scoring bigger profits without increasing capacity. Now, months later and with a nearly fully recovered Bitcoin hashrate, the momentum has held.

Nasdaq-listed Riot Blockchain mined 466 bitcoin last month, an increase of approximately 298% over the same period the previous year, the company said in a statement Thursday. So far this year, the miner has produced 3,387 BTC  262% more than in the first 11 months of 2020. Its deployed fleet of nearly 30,000 rigs is outputting three exahashes per second (EH/s) and adding more bitcoin each month to a stack of 4,464 BTC as of November 30.

Riot also wants to increase its operational efficiency further. On Wednesday, the company announced it had acquired the electrical equipment provider ESS Metron in a $50 million deal. The supplier is key to Riot’s operations, and now as internal to the company’s operations, it will enable timely installation of new miners.

On Wednesday, Canadian Bitfarms, another prominent bitcoin miner listed on the Nasdaq, said that its bitcoin production had surpassed 3,000 newly issued coins in 2021, 96% of which was deposited into custody. The company mined 339 BTC in November, up from 343 in the previous month, and increased its capacity by 16% in the same period. Bitfarms’ fleet currently outputs 2.1 EH/s of hashrate power.

Public miners have committed to a “hodling” strategy in the past few months, seeking to capitalize on the scarcity of bitcoin and spend fiat currency instead. Although most of their expenses, such as electricity, are still priced in fiat, miners can leverage their hoard of BTC to issue collateralized loans and access low-risk capital in U.S. dollars.

Large miners’ ferocious stockpiling of bitcoin likely caused a BTC supply shock in October. The bitcoin price appreciated more than 50% in that month, partly because of big players’ reluctance to let go of their earned rewards. As miners are the ones to bring new coins to market, their refusal to do so impairs the ability of fresh BTC to be traded, further reducing an already scarce supply.

Hut 8 is one of such “hodlers.” The Canadian miner deposited all of its 256 BTC mined in November into custody, the company said on Thursday. Hut 8 currently has an installed hashrate of approximately 1.7 EH/s and 5,242 bitcoin in reserve.

HIVE, another miner from the North, said on Friday it produced 218 bitcoin last month, following a record-breaking month in October. The company has 1.31 EH/s of installed Bitcoin mining capacity.

Despite most public miners having thrived in November, Marathon Digital wasn’t so lucky. The miner with the largest bitcoin holdings saw its hashrate capacity drop last month due to a series of maintenance work on one of its power plants. Marathon produced only 196 BTC in November, down from over 417 bitcoin in the previous month. But the miner said its Hardin, Montana, facility is now fully operational, having produced 34 bitcoin on its first day at full capacity.

Why Bitcoin Needs To Clear $64K For Hopes of a Fresh Rally

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