The price of Bitcoin was in a narrow range on Saturday, as the hash rate fell, and the bearish divergence formed, risking a bearish breakout.
Bitcoin (BTC) was trading at $94,296 at last check as the market reacted to the latest report from the Bureau of Labor Statistics showing that the US economy created more. 256,000 jobs. The unemployment rate fell to 4.1%.
As a result, American equities fell, with the Dow Jones and Nasdaq 100 falling by 697 and 317 points, respectively.
As crypto.news expected, the bond market continues to sell, with the 30-year yield rising to 5.0%. The 10-year and 5-year yields stood at 4.76% and 4.57%, respectively. The rise in yields indicates that the market expects the Federal Reserve to maintain a dovish tone, which typically affects risky assets like Bitcoin and altcoins.
Meanwhile, data from IntoTheBlock shows that Bitcoin’s hash rate has retreated in recent days as its price has settled.
It had a hash rate of 750 TH/s on Saturday, January 11, lower than the 30-day high of 911.88 TH/s and the 30-day average of 793 TH/s.
A hash rate is an important number that shows the speed at which mathematical puzzles in the network are solved.
More data on the chain shows that the number of active Bitcoin addresses is back to 775,000 from 900,000 on Monday, a sign that some traders have started to sell. For example, according to SoSoValue, everyone spot Bitcoin ETFs had total flows of $572 million over the last two consecutive days.
Bitcoin price is forming a bearish divergence
The daily chart shows that Bitcoin is at risk of a bearish breakout. It formed the risky chart pattern of the head and shoulders, whose rock is at $90,952. This is one of the most popular bearish patterns in trading.
The Bitcoin Relative Strength Index and MACD indicators have formed a bearish divergence pattern. The MACD histograms have moved below the zero line.
Therefore, a break below the H&S neckline at 90,950 risks further downside. The first support from this will be the 200-day moving average at $78,285 followed by $73,985, the highest point in March of last year.
On the positive side, as we wrote earlier this week, the price of Bitcoin is forming a bullish pennant chart pattern on the weekly chart. That model will remain in play until it is above $90,000.
