Miners may hit pause on the good times for BTC price action, one theory believes, as the weekend promises support tests.
Bitcoin climbed back to $20,500 at the Oct. 28 Wall Street open as United States equities sought a stronger finish to the week.
Bets of $20,000 support fail increas
Data from TradingView showed BTC/USD capitalizing on renewed optimism as markets began trading.
The atmosphere was volatile after tech stocks suffered a major out-of-hours rout overnight, Bitcoin managing to avoid sustaining knock-on losses to the same extent.
At the time of writing, the S&P 500 and Nasdaq Composite Index were both up around 1.3%.
“In this current range bound phase after a prolonged downtrend,” popular trader @CryptoYoddha summarized to Twitter followers.
“Smart money/Institutional players aim to build up or take positions without significantly increasing the price. I’m feeling bullish.”
Economist, trader and entrepreneur, Alex Krueger meanwhile laid out the likely plan for the days ahead. Crypto, he argued, should retest recent lows before rebounding into important news from the Federal Reserve next week.
“Thinking crypto lower tomorrow together with stocks, some late Friday hedging, quiet weekend, ETH mid to low 1400s, BTC mid 19000s get bought, then ride higher with the FOMC next week,” part of a tweet read.
“Uptrend remains.”
Markets had quietened considerably after Bitcoin hit six-week highs, cryptowallcity reporting on the extent of short liquidations executed as a result.
Miners “biggest intra-Bitcoin risk” to the market
Looking at what could puncture the bullish mood outside of macro, crypto research firm Reflexivity Research placed a special focus on miners.
After major mining firm Core Scientific warned of liquidity problems, concerns over mining profitability in the face of exploding hash rate continued to surface.
As Cryptowallcity noted, theories over why hash rate was diverging so much from spot price even included Russia seeking to corner the industry.
“Miners remain the biggest intra-Bitcoin risk to the market in our view,” Reflexivity confirmed on the day.
Michaël van de Poppe, founder and CEO of trading firm Eight, meanwhile described miners as “capitulating” — a status not seen in several months.
“Meanwhile; from a technical standpoint, $BTC looks to reach long territories here,” he added about BTC price action.
“Sweeping the low and should hold around $19.9K. If that doesn’t grant support, then I’m looking at $19.6K.”
Data from BTC.com meanwhile showed hash rate at around 257 exahashes per second, with difficulty due to undergo a slight decrease at the next adjustment, still nine days away.
Read more: Next Bitcoin rally to start in Q2 2023 — Mark Yusko explains why
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