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The price of bitcoins collapsed Tuesday night, losing more than $ 1,000 in over an hour. BTC has lost more than $ 1,200 in the past 24 hours and investors are wondering where the next stop will be.
Descending triangle turns bearish effect
Bitcoin has moved in a descending triangle, a pattern known for its bearish effect in technical analysis. However, some investors were hoping that BTC would break the line of resistance, especially after the cryptocurrency saw several peaks rise higher than the top line of the chart.
Nevertheless, our technical analyst hinted yesterday that the price of bitcoins would be lower than the support line and could even drop to $ 7,200, a scenario that is now even more plausible.
According to Coinmarketcap data, BTC reached its lowest daily level at $ 8,370, its lowest level since mid-June. Bitcoin has recovered some of the losses, so far earning more than $ 200, but has declined by more than 12% over the last 24 hours, causing the entire crypto market down. Elsewhere, Bitcoin Cash and EOS fell by more than 28%, while Ethereum, Litecoin, Binance Coin, Stellar Lumens, Cardano, as well as dozens of other coins, also recorded double-digit losses. .
Falling prices in Bitcoin follow a flash crash in Hashrate
It should be noted that the latest fall of Bitcoin was preceded by a shocking flash crash of its hash rate, as shown by Blockchain.com data.
The Bitcoin hash rate dropped about 40% on September 23, which is a record. The crash remains unexplained and surprising, given that the hash rate used to climb and update the record record several times. This measure shows the difficulty of mining, while the competition between BTC miners is increasing.
The answer could come from China, the country of origin of several dominant mining entities. We reported that China was considering removing crypto-minors from its territory. However, the process has not officially started yet.
It is interesting to note that the flash hash rate crash coincides with the UN Climate Action Summit, which was held from 21 to 22 September. This event could have put pressure on the miners, who often rely on dirty energy to generate new blocks.
Do you think the price of bitcoins will soon drop below the $ 8,000 level? Share your expectations in the comments section!
Images via Shutterstock, TradingView, Blockchain.com
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