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Bitcoin (BTC) may have to wait for a bull cycle

Bitcoin was hovering at US $23,448.87 as of 28 February at the time of writing (1:11 am GMT), according to CoinMarketCap.

The global crypto market cap stood at US$1.07 trillion, down by 0.46% over a day with a 24-hour volume of US $45.37 billion.

When Bitcoin touched US$25000 on 21 February for the first time since August, several crypto enthusiasts hoped the bull cycle would return to the king of crypto. Courtesy of a 9% rally, Bitcoin was able to trade as high as US $25,104, thereby helping it recover some of its losses and bring its YTD gains to 50%.

However, all hopes were quashed as it quickly retraced and returned to the US$23000 mark following the negative remarks from financial regulators. Currently, it is hovering at US $23,448.87 as of 28 February at the time of writing (1:11 am GMT), according to CoinMarketCap.

The global crypto market cap stood at US$1.07 trillion, down by 0.46% over a day with a 24-hour volume of US $45.37 billion.

Will Bitcoin bulls rise again?

Well! That's the question on everyone's mind. Cryptoverse-Explored But seeing how Bitcoin has reacted of late, it would be safe to assume that the leading crypto could witness a sideways action, like 2015-2016, to move towards sustainable growth rather than rushing like in 2019.

In fact, since trading above US$ 25000, the BTC has quickly slipped back and has now registered losses of 5% over a week. BTC's futures premium seems to have stuck in a sideways zone despite the US $25,000 rejection.

Futures are often seen as a preferred instrument of whales as their settlement date and the price difference from spot markets.

Image credit: Trading View

That said, the Futures Perpetual Index (FPI) indicates it is below 2000, indicating that sellers request more money to withhold settlement longer.

Not just the FPI, BTC's OI (Open Interest) seems to have dropped over the past week resulting in the stagnation of market participation and trading activity. Besides, it also hints at a decline in demand for BTC.

How is the BTC price faring?

The Numero Uno crypto on Tuesday was down by 0.53% with a live market cap of US $4,51,60,28,59,197.

The RSI of Bitcoin stood at 52.4, indicating sellers have moved into a more stagnant phase compared to a week before.

The MACD, too, indicated a weakening of demand as the blue line (MACD line) dropped below the signal line (red line). The momentum seems to have slowed and shows that the bitcoin bulls might take some time to pull themselves back to the momentum.

Finally, the BTC's Aroon Up Line (orange) was about 14.29% at the writing. Usually, when an Aroon Up line is close to zero, it indicates a weak trend. A decline often follows this in the asset's prices.

The market participants may want to wait before making critical investment decisions even as the bears start circling around the bulls.

Dogelon Mars crypto is primarily a meme-based token that is built on the Ethereum blockchain.

ELON’s aim is to create an intergalactic currency for Mars and beyond.

It was gaining much traction on 27 February as it was rallying by 4% and a volume gain of 25.76% at the time of writing, according to CoinMarketCap.

Launched in April 2021, Dogelon Mars crypto is a meme-based token built on the Ethereum and Polygon blockchains. Popularly known as mini Dogecoin, it aims to create an intergalactic currency that future space colonizers can use on Mars and beyond.

Governed by its native token ELON, it does not mention any use case scenarios or applications to support it. However, the Dogelon developers aim to create a user-friendly, community-based crypto similar to DOGE and other leading meme-based crypto projects.

The ELON was gaining much traction on 27 February as it was rallying by 4% and a volume gain of 25.76% at the time of writing, according to CoinMarketCap. The token has been in hot trends over the past month or so as it has accumulated gains of about 30%, according to CoinGecko.

Founded by anonymous individuals, the Dogelon Mars crypto has primarily earned the reputation of helping crypto victims. Dogelon Mars crypto's vision to create a fair currency model makes it one of the unique tokens.

Why is Dogelon Mars rallying today?

While the exact reason for the Dogelon Mars rally is still unknown, a look at the charts indicates that it has been on a rising trend even as other cryptos continued to see a fall. In fact, the Dogelon Mars has gained over 9.4% over the fortnight itself, according to CoinGecko.

The RSI of the ELON token stood at 55.07, indicating interest in the token is continuing to hold ground. Despite the blip, the Elon token has managed to attract good interest but still is over 85%, down from its all-time high of US $0.00000259.

The MA 50-day and 200-day indicate the momentum to get stronger as it nears the 200-day period. However, analysts are also not rooting out market corrections, which may affect its price.

How is the ELON faring?

The 150th-ranked token on Monday was trading at US $0.0000004334, with a 24-hour trading volume of US $41,36,162, according to CoinMarketCap. At the time of writing, the token was rallying by 4.74% with a live market cap of US $23,88,96,195. The ELON token had a circulating supply of 54,96,52,77,01,59,583 ELON coins.

While the rally of Dogelon Mars cryptocurrency would have buoyed its investors, they should also be mindful that cryptocurrencies are highly volatile and carry a bit of risk. Therefore, one must conduct proper market research before making critical investment decisions.  

A hash rate primarily refers to the computing power of a computer network that miners use for processing crypto.

Primarily used for Bitcoin and Ethereum (before it switched to Proof-of-Stake), the hash rate helps secure transactions within the cryptocurrency network.

The hash rate is an important metric providing insight into a cryptocurrency network’s health, security, and profitability.

A hash rate primarily refers to the computing power of a computer network that miners use for processing crypto, which operates on the Proof-of-Work consensus. It is primarily used for Bitcoin and Ethereum (before it switched to Proof-of-Stake), and the hash rate helps secure transactions within the cryptocurrency network.

As hash comprises a fixed length of alphanumeric code representing words, messages and data of any length, various crypto projects use different hashing algorithms to create different types of hash code. It is calculated using several cryptographic calculations that a computer can perform in a given period. The hash rate is typically measured in hashes per second (H/s), kilohashes per second (KH/s), megahashes per second (MH/s), gigahashes per second (GH/s), terahashes per second (TH/s), or petahashes per second (PH/s).

Read More: Elon Musk’s statement on TruthGPT gives rise to fake cryptos

What does a higher or lower hash rate indicate?

In the cryptoverse circles, the higher the rate would mean a greater probability of a miner solving a block and being rewarded with a new cryptocurrency. It is often considered as an important metric for miners to consider when evaluating a cryptocurrency’s profitability.

Meanwhile, a lower rate can hint that the mining rig is not powerful enough to mine a particular cryptocurrency profitably. It may also mean the mining rig is experiencing technical issues, such as poor network connectivity, overheating or hardware failure. Overall, a low rate can signal inefficiency or technical problems in the mining process, resulting in lower profitability and slower block creation times.

What are its advantages?

There are several advantages of the hash rate. Hashrates are useful in several ways, particularly in cryptocurrency mining. Here are a few ways in which hash rate is useful:

Profitability: Hashrate is a key factor in determining the profitability of mining a particular cryptocurrency. Miners with higher hash rates are more likely to mine blocks successfully and earn rewards, making them more profitable.

Network security: The hash rate is also an important indicator of the overall safety of a cryptocurrency network. A higher hash rate makes it more difficult for attackers to launch 51% of attacks, which can undermine the integrity of the network.

Network performance: The hash rate can also measure a cryptocurrency network’s overall performance. If the hash rate increases over time, it can indicate that more miners are joining the network and that network is growing in popularity.

Difficulty adjustment: The hash rate also plays a role in the automatic adjustment of the mining difficulty of some cryptocurrencies. As more miners join the network and the hash rate increases, the mining difficulty also increases to maintain a consistent block time.

The hash rate is an important metric providing insight into a cryptocurrency network’s health, security, and profitability. It can be used by miners, investors, and developers to monitor network performance and make informed decisions about cryptocurrency mining and investment.

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