Bitcoin’s price remained stable on Saturday, despite a decline in hash rate and emerging bearish divergence that threatens to trigger a downward movement.
Currently, Bitcoin (BTC) is priced at $94,296, influenced by recent employment data from the Bureau of Labor Statistics, which reported that the U.S. economy added over 256,000 jobs and the unemployment rate dropped to 4.1%.
This economic data prompted a sell-off in American equities, with the Dow Jones and Nasdaq 100 indices experiencing declines of 697 and 317 points, respectively.
In line with market expectations, bond yields continued to rise, with the 30-year yield hitting 5.0%, while the 10- and 5-year yields climbed to 4.76% and 4.57%, respectively. These increases suggest that the market anticipates a continued hawkish stance from the Federal Reserve, which could negatively impact riskier assets like Bitcoin and altcoins.
Recent data indicates a notable decline in Bitcoin’s hash rate, falling to 750 TH/s on Saturday, a drop from its 30-day high of 911.88 TH/s and below the 30-day average of 793 TH/s. This hash rate metric is significant as it reflects the speed at which computations are processed within the network.
Moreover, on-chain analytics reveal that active Bitcoin addresses have decreased from 900,000 to 775,000 since Monday, signaling a potential shift in trader sentiment toward selling. In a related trend, spot Bitcoin ETFs reported outflows totaling $572 million over the past two days.
Bearish Divergence Develops for Bitcoin Price
Technical analysis of Bitcoin’s daily chart indicates a risk of a bearish breakout. The cryptocurrency is forming a head and shoulders pattern, with a critical neckline positioned at $90,952, a widely recognized indicator of bearish trends.
Furthermore, Bitcoin’s Relative Strength Index (RSI) and MACD indicators have exhibited a bearish divergence, with MACD histograms falling below the zero line.
A breach below the head and shoulders neckline at $90,950 could result in increased downside pressure. Initial support levels are set at the 200-day moving average of $78,285, followed closely by $73,985, which marks the highest point from March of the previous year.
On a more optimistic note, Bitcoin is also shaping a bullish pennant pattern on its weekly chart, which will remain valid as long as it stays above the $90,000 threshold.
