Bitcoin’s hashrate is breaking records, but price is still far from its ATH – Why?
Network power is at an all-time high, but BTC still can’t crack key resistance levels.
Key takeaways
Bitcoin’s hashrate hit a historic 1 zetahash per second, but the price action remains stuck below $113k. Despite strong buying interest and a hike in Open Interest, breaching resistance levels will be tough.
Bitcoin’s [BTC] hashrate is in the news today after it blasted past 1 zetahash per second for the first time ever! Now, while that’s a big show of network strength, the price action seemed to tell us a different story.
On Binance, for instance, BTC saw its strongest burst of buying in weeks, only to stall out once again at the $112,500-ceiling. The failure to crack resistance could either mean heavy-handed selling pressure or buyers lacking the conviction to push harder.
What’s going on?
A new era for BTC mining
On 02 September, Bitcoin’s hashrate officially crossed the 1 zetahash-per-second mark – A first in the network’s history.
While this underlined the computational power securing the blockchain, it also alluded to the financial strain on miners. Higher hashrates are usually a sign of growing competition, squeezing profitability as operational costs climb.
At the time of writing, leading the charge were Foundry USA Pool and AntPool. Together, they are dominating a large slice of the network. Their rise can be traced back to China’s 2021 mining crackdown – A development which reshaped global distribution and shifted power west.
Buyers push, sellers hold
Early September brought Bitcoin’s strongest burst of buying on Binance in weeks, with taker buy volume and taker imbalance percentages revealing a clear tilt towards demand.
Between 02 and 03 September, buyer activity spiked sharply, while the sell volume fell back. And yet, the price stalled just below $112.5k.
This could be hidden sell walls, or whales strategically absorbing buying pressure.
Additionally, Open Interest across exchanges climbed past $40 billion, near record highs – Aggressive positioning despite muted price action.
The market may very well be primed for a breakout… and yet, still be capped by stubborn resistance levels.
Resistance still rules
Bitcoin, at press time, was valued at just under $113k, with daily candles showing a modest rebound after its late-August weakness.
The RSI was near 50, while the MACD had just started to turn less bearish – A hint that buyers may be regaining ground.
Still, the $112.5k-$113k zone remains the wall to beat for the cryptocurrency.
A breakout could fuel a push towards $116k, but a failure would risk another pullback below $110k.
In fact, popular analyst TedPillows added more to the discussion, stating that BTC dominance could spike to 61% before sliding in Q4. This would potentially make way for an altcoin accumulation window, ahead of a larger market rally.
