Bitcoin does not budge and struggles to defend support at $ 11,200

Bitcoin does not budge and struggles to defend support at $ 11,200

By espacioreal | elespacioreal | 16 Oct 2020

The latest negative movements - like most of the market swings in recent months - from the United States. Treasury Secretary Stephen Mnuchin dismissed the chances of approving the new stimulus package proposed by Donald Trump before the elections.
According to specialists, the congressional delays in the face of the new fiscal stimulus are only bringing traders back to the safety of the US dollar. Most investors hope the move will prop up the crypto market, but it is unclear how long they will have patience with congressmen.
In addition, the increase in cases of coronavirus cases in the North American power, which is consistent with a new outbreak in Europe, continues to postpone the global economic recovery indefinitely and the markets act accordingly.
In the short term, the priority for BTC will be to defend the support at $ 11,200. As for the medium or long term, the benchmark cryptocurrency is expected to head back to an annual maximum if it far exceeds 11.5K.
The Bitcoin Hash Rate hit a new record high, proving that the gloomy forecasts on Halving were wrong. Ethreum (ETH), Litecoin (LTC) and XRP, meanwhile, held above $ 375, $ 49, and $ 0.24 respectively.
The altcoin market followed the movements of BTC. With the exception of Bitcoin Cash (BCH), the rest of the major cryptocurrencies did not exceed 1% daily growth. BCH jumped 2.5%, and reached $ 260.
Despite the situation the whole world is in due to the Coronavirus pandemic, 2020 has been a very good year for the crypto market. And it is that, while large sectors of the world economy were paralyzed due to the health crisis. The crypto world did not stop growing. An example of this is that the Bitcoin Hash Rate reaches a new record, showing the trust of users in the cryptocurrency.
Those of us who have been part of the crypto community for a while have become accustomed to the presence of the Hash Rate as an important element of how Bitcoin works. Generating analysis with the movements in its value, and driving optimism in the crypto market each time it reaches a new record.
And it is that, the Hash Rate represents the total of the computing power that operates at a given moment in the Bitcoin Blockchain. That is, this statistic serves as a reference to know how much power Bitcoin miners dedicate to the execution of cryptocurrency transactions.
Therefore, a higher Hash Rate represents an increase in the power of the mining machines that exist in the BTC blockchain. And therefore, an increase in the investment of miners in the cryptocurrency. While a decrease in the Hash Rate would mean that there is a withdrawal of mining machines from the Bitcoin network. As miners abandon their Blockchain activities for one reason or another.
However, for several years now, Bitcoin has not suffered permanent drops in the Hash Rate. On the contrary, it has not stopped increasing, constantly reaching new record figures. Having risen only in 2020 so far by 36%, with a current value of 144 million TH / s, the highest computing power gathered in the Bitcoin Blockchain so far.
This constant increase in the Hash Rate often generates optimism within the crypto community. Well, it not only indicates a constant increase in the investments of miners in the cryptocurrency. But, in addition, it would provide greater security to the participants of the BTC Blockchain. Well, higher processing power would also make a Bitcoin hack more difficult.
The current value of the Hash Rate, moreover, would show that the gloomier forecasts for Bitcoin after the Halving would have been wrong. Since, unlike what happened with other cryptocurrencies such as Bitcoin Cash, BTC miners have remained in their positions, increasing their investment, despite the decrease in mining rewards.


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