Bitcoin has recovered this month after falling to a yearly low of $33,000 in January. In the first week of February, it broke above the $38,000 and $41,500 resistance levels, reaching monthly highs of $46,000, a level last seen in the final weeks of 2021.
Traders have since taken profits on the move, with bitcoin reaching weekly lows of $41,600 in early Asian hours on Monday before recovering to nearly $42,000 in the afternoon.
On Monday, the RSI, or Relative Strength Index, read 39, indicating that the weekend slide had ended and that the uptrend would continue to $48,000.
The relative strength index (RSI) is a price-chart indicator that calculates the magnitude of price changes. Readings above 70 indicate that an asset is “overbought” and may experience a correction, while readings below 30 indicate that an asset is “oversold” and may recover.
According to data from analytics tool YCharts, the weekend price action occurred as hashrates surged to new all-time highs.
Hashrates are a measure of the computing power required to mine blocks on the Bitcoin network, and higher rates make it much more difficult for single entities to attempt to control the network in a so-called “51 percent attack.”
On Saturday, hashrates reached 248.11 million terahashes per second (TH/s), up from 180 million TH/s the previous week. Data show that it is currently hovering at 209.63 million TH/s, down 15.51 percent in the last 24 hours.
Bitcoin hashrates have increased by more than 50% in the last year. As of last July, miners based in the United States accounted for 35.4 percent of the network’s hashrate.
To read our blog on “Over $1 Trillion in losses due to Bitcoin and Crypto crash,” click here.