- The price of BTC has been trapped in a parallel channel for several weeks.
- Miners may turn off their machines as the network hash rate continues to rise.
- A capitulation phase that could bring BTC down to $11,000 is fast-approaching.
Bitcoin (BTC) fractals have remained mostly unchanged, with prices consolidating within the same ranges. This continues to be the case despite the network’s hash rate increasing and reaching new highs over the past few weeks. As a result, the next few weeks will be crucial in determining the future path of the market leader and the rest of the crypto market.
BTC’s price movement is yet to register a significant bounce, keeping the weekly and monthly charts bearish. More specifically, BTC’s price has faced steep rejection from critical resistance levels, which may now severely limit the strength of any short-term bullish rally.
Meanwhile, the mining difficulty, or hash rate, for the BTC network has been reaching new highs every day, according to a tweet from @glassnodealerts made today.
The social media post goes on to say that the mining difficulty for BTC has just reached an all-time high (ATH) of 158,208,051,864,292,013,637,632. The previous hash rate ATH for the network was observed on 23 October 2022 and was 152,947,196,320,564,012,646,400.
As the mining difficulty for BTC continues to increase and BTC’s price continues to remain somewhat dormant, miners may opt to turn off their mining machines over time, which will result in a major capitulation phase.
In fact, a major capitulation that could drag the price of the crypto market king down to the $11,000 mark is fast-approaching. This is because it appears the asset has yet to reach a bottom as selling pressure continues to accumulate on the monthly time frame. As such, a bearish close for BTC’s price towards the end of the year is likely.
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