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Bitcoin miners have just conveyed a significant message regarding BTC Price.
The network hashrate has experienced a sharp V-shaped recovery, even after January eliminated weaker participants. This type of rebound indicates that miners are not retreating. On the contrary, they appear to be positioned for an upward movement while $60,000 remains intact.
Bitcoin (BTC)24h7d30d1yAll time
Last month proved to be harsh. BTC fell from $90,000 to a low of approximately $60,008 on February 6. Concurrently, ETFs experienced $544M in outflows in a single day, and futures markets saw $2B in liquidations.
Mining difficulty recorded its largest negative adjustment since the 2021 China ban. Such capitulation typically occurs near market bottoms. Weaker participants exit, while stronger ones endure. Consequently, margins quietly improve for those who remain.
Can Miners Maintain the Momentum?
The hashrate rebound indicates that the panic was short-lived.
Major pools like Foundry USA are consolidating their influence, and Mara.com maintained around 61.7 EH/s even amid peak volatility. This V-shaped recovery suggests that industrial miners absorbed the shock and are adopting a bullish stance.
This is significant.
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Source: Blockchain
However, it is not without risks. Margins are narrow. If the Fed adopts a hawkish stance, capital becomes more costly, particularly for leveraged miners. They are evidently wagering that rising spot prices will provide them relief.
What Does This Indicate for BTC Price Movement?
The hashrate increase serves as a strong fundamental advantage. Nevertheless, price ultimately determines everything.
Bulls must reclaim and maintain $74,000 to validate a genuine reversal. As Arthur Hayes consistently emphasizes, liquidity will dictate the pace of this movement.
If BTC can remain above $70,000, the next target for upward movement is around $83,000. A loss of momentum could lead to a decline back toward the $49,000 to $53,000 range.
At present, network strength appears bullish. However, the chart must reflect this trend.
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