The price of Bitcoin remained in a tight range on Saturday when the hash rate fell, and a bearish divergence was created, threatening a breakdown.
Bitcoin (BTC) traded at $94,296 at last check as the market reacts to the latest report from the Bureau of Labor Statistics showing that the US economy created over 256,000 jobs. The unemployment rate fell to 4.1%.
As a result, American shares fell, with the Dow Jones and Nasdaq 100 indexes falling by 697 and 317 points, respectively.
As Anticipated crypto.news, bond market The selloff continued, with the 30-year yield rising to 5.0%. The 10- and 5-year yields rose to 4.76% and 4.57%, respectively. The increase in yields indicates that the market expects the Federal Reserve to maintain a hawkish tone, which usually affects risky assets such as Bitcoin and altcoins.
At the same time, data by IntoTheBlock shows that the hash rate of Bitcoin has gone back in the last few days because its price has decreased.
It had a hash rate of 750 TH/s on Saturday, January 11, below the 30-day high of 911.88 TH/s and the 30-day average of 793 TH/s.
Hash rate is an important number that looks at the speed at which mathematical puzzles are solved in the network.
More data on the chain shows that the number of active Bitcoin addresses has gone back to 775,000 from 900,000 on Monday, a sign that some traders have started selling. For example, according to SoSoValue, all See Bitcoin ETFs which had outflows worth $572 million in the two consecutive days.
Bitcoin price is creating a bearish divergence
The daily chart shows that Bitcoin is in danger of a bearish breakout. It has formed a dangerous head and shoulders chart pattern, which has a neckline at $90,952. This is one of the most popular bearish patterns in trading.
The Bitcoin Relative Strength Index and the MACD indicators have formed a bearish divergence pattern. MACD histograms have moved below the zero line.
Therefore, a break below the H&S neck at 90,950 is at lower risk. The first support for this will be the 200-day moving average at $78,285 and then $73,985, the high point of last March.
On the positive side, as we wrote earlier this week, the price of Bitcoin is creating a bullish pennant chart pattern on the weekly schedule. That pattern will continue in play as long as it is above $90,000.
