The Bitcoin exchange rate is struggling to get off the mark and is trading at a rather low USD volume. We tend to be in an upward channel, but the declining volume usually indicates a longer-term consolidation phase. Therefore, the bear flag remains valid. The Bitcoin price is currently facing resistance at $ 6,800 and is now supported from below by the 20-day average.
We can also see a bearish pattern on the daily chart screaming for an upcoming sell-off while the EMA50 threatens to break through the EMA200.This technical pattern is known as the death cross. It always occurs when a shorter average crosses a longer-term average.Even if the last death cross wasn’t that important, crypto traders all over the world see it and know what it means. That could become a self-fulfilling prophecy.
The bitcoin hash rate has dropped significantly since its recent high. After the Bitcoin rate dropped over 60 percent last week, mining was no longer profitable for some miners and they had to take their machines off the grid. The difficulty was then reduced by over 15 percent. These adjustments usually take place every two weeks to ensure that the Bitcoin network continues to produce new blocks every 10 minutes. The last time such a big negative adjustment took place, the Bitcoin price fell almost 50 percent.