Bitcoin's 30-Day Demand Turns Positive, Hash Rate Rises 10%

Bitcoin's price is showing signs of a potential rally, with some analysts speculating that it could reach $90,000. This optimism is fueled by a recent bounce in Bitcoin's apparent demand, which had been in a negative zone for weeks. The 30-day sum of apparent demand has moved into positive territory, suggesting a possible shift in market sentiment. However, experts caution that this recovery may not yet signal a complete market reversal, as past cycles have shown that similar patterns were followed by extended periods of consolidation.

Bitcoin's hash rate, a measure of the computing power used to mine the cryptocurrency, is also on the rise. This increase indicates higher optimism among miners despite the sideways trend in BTC/USD. A higher hash rate points to increased network security and more distributed mining, both of which are positive for Bitcoin in the long run. Analysts note that this trend supports the idea that Bitcoin remains a solid investment despite price fluctuations. With higher hash rates, Bitcoin's security and decentralization improve, contributing to its long-term potential. Additionally, some investors have turned to Bitcoin as a "safe haven" following recent economic uncertainties.

Bitcoin's price is currently testing critical support levels, with the most essential level identified at $82,024. This level corresponds to the point where a significant amount of BTC was previously accumulated. A strong defense of this support level would indicate that buyers are in control and that a higher price move could be imminent. Institutional investors, including microstrategy, play a significant role in Bitcoin's market performance. Recently, MicroStrategy purchased an additional 3,459 BTC, reaching a total Bitcoin holdings of 531,644 BTC. Similarly, another institutional buyer, Metaplanet, bought 319 BTC. This indicates new institutional buying, which could support the Bitcoin price if it falls. Moreover, the growing number of companies declaring Bitcoin on their balance sheets indicates increasing interest in the cryptocurrency.

As Bitcoin's price continues its upward movement, it faces several key resistance levels. The first resistance level ranged from $74,000 to $78,000, and the current price has tested and broken this level. An upward breakout above this range has led to a surge in Bitcoin's price to its next target, a pivotal point of control (POC) at $97,000. Beyond this level, Bitcoin could move towards the $110,000 range, with analysts predicting this level may be reached by late summer. However, while short-term momentum appears bullish, multiple resistance hurdles remain before confirming the correction is complete.