Bitcoin miners just sent a loud signal to Bitcoin price.
Even after wiping out weaker operators in January, network computing power has recovered sharply in a V-shape. This rebound shows that miners are not backing down. If anything, they look poised to rise with the $60,000 level holding steady.
Bitcoin (BTC) 24h7d30d1y
The last month has been brutal. BTC fell from $90,000 to a low of nearly $60,008 on February 6. At the same time, ETF outflows reached US$544 million in a single day, and the futures market liquidation amount reached US$2 billion.
Mining difficulty even saw its largest negative adjustment since the Chinese ban in 2021. This capitulation usually occurs near the bottom. Weak hands are closed. Stronger players survive. For those companies that are still standing, profit margins are quietly improving.
The recovery in computing power shows that the panic did not last long.
Large mining pools like Foundry USA are tightening their grip, while Mara.com is holding steady at around 61.7 EH/s even during peak volatility periods. This V-shaped rally tells you that industrial mining companies have absorbed the shock and are leaning bullish.
This is important.
Source: Blockchain
Still, it’s not without risks. Margins are tight. If the Fed leans hawkish, capital will become more expensive, especially for leveraged miners. They are clearly betting that rising spot prices will help them out.
The rebound in computing power is a solid fundamental driving force. But price still determines everything.
Bulls would need to get back and hold $74,000 to confirm a true reversal. As Arthur Hayes keeps pointing out, liquidity will control how quickly this move unfolds.
Source: BTCUSD/TradingView
If BTC can hold above $70,000, the next upside target will be around $83,000. Losing momentum, the downside would be back to the $49,000 to $53,000 area.
Currently, network strength is biased towards the bullish side. But the chart must be followed.
Discover: Here are the cryptocurrencies that could explode!
Read original story Bitcoin hash rate explodes in V-shaped recovery – Are miners betting on a BTC price breakout? Author: Ahmed Balaha, Cryptonews.com
