Over the past few weeks, Bitcoin has seen a significant rally, up 19% in just a month, leading many to wonder if the bear market is finally over. This update dives into bitcoin price predictions, analyzing various factors contributing to the cryptocurrency’s recent price gains while also assessing the likelihood of an ongoing uptrend.
Will Bitcoin Hashrate Growth Slow Down in April?
Bitcoin’s average one-day hashrate hit 398 EH/s over the past weekend, sparking speculation on social media. However, it is important to remember that Bitcoin’s hashrate is back-calculated from block production and luck plays a more important role in short timeframes than longer timeframes, making single-day data less accurate.
Separately, Bitcoin’s monthly average hashrate rose significantly year-to-date, from 273 EH/s in January to 330 EH/s in March. However, metrics analyzed by TheMinerMag suggest that growth could slow in the coming months.
Net spending on property, plant and equipment (PP&E) by North American public mining companies started to contract in Q322, data from 18 companies showed. With only 12 companies reporting cash flow activity for Q4’22, the trend appears to have continued. These 12 companies saw a decline in net PP&E spend from Q1 to Q4.
Previous data showed that Bitcoin miner shipments to the US surged in September 2022 and January 2023, about six months after the end of Q1’22 and Q2’22, respectively. These quarters were public miners Recorded net PP&E spend of nearly $2 billion.
Considering the six-month lead time, reduced PP&E spending in the second half of 2022 suggests that miner shipments to the US could slow in the coming months, potentially slowing US hashrate contribution to the network.
Unless bitcoin surges well above $35,000, the older generation of devices are less likely to become viable and turn back on.
US economic data and macro factors are causing Bitcoin investors to exercise caution
Investors are keeping a close eye on a series of US economic reports this week, beginning with manufacturing activity data due to be released later in the day. Nonetheless, the results are expected to show that the US manufacturing sector is in a contraction phase for the fifth straight month.
Meanwhile, the main attention will be on non-farm payrolls data, due to be released on Thursday. Traders will be on the lookout for further signs of labor market fragility, which could lead to a less aggressive stance from the Federal Reserve this year.
With upcoming economic data out of the United States, traders appear cautious about bids of substance. Additionally, macroeconomic elements such as inflation, financial instability, and regulatory changes can affect the Bitcoin market, leading to notable price volatility.
bitcoin price
Bitcoin’s current price is $28,150, with a trading volume of $10.1 billion in the last 24 hours. In the last day, Bitcoin’s value has fallen by 0.20%. According to CoinMarketCap, Bitcoin holds the #1 position with a market cap of $548 billion.
The technical outlook remains consistent as Bitcoin trades in a tight range between $28,250 and $28,900. If Bitcoin successfully breaks the triple top pattern at $28,900, it could potentially propel the cryptocurrency towards its next resistance level at $29,600.
Bitcoin price chart – Source: Tradingview
On the other hand, if the market faces a downturn, the immediate support level for Bitcoin is $27,600. A decisive breakout of the $28,200-$28,900 trading range will be crucial to set the future trajectory of Bitcoin’s price action.
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