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Bitcoin and Ethereum hash rates recover, coin prices battle sellers

2021.07.29 Adam James

BTC buyers are at war with sellers around 40,000 USDT as the White House notes plans to partially fund an infrastructure bill through enhanced cryptocurrency tax enforcement.

The global cryptocurrency market capitalization is down by just less than 1% today as the price of BTC battles against a wall of sellers around 40,000 USDT. Per data from CoinGecko, the leading cryptocurrency is down by 2.7% over the past 24 hours — with most altcoins following suit.

The altcoin market is following in BTC's footsteps, even when adjusted for Coin360's default time settings. Source: Coin360

Bolstering this week's rally is the fact that the hash rates for both Bitcoin and Ethereum are recovering from the steep declines — which followed an exodus of cryptocurrency miners from China. The relocation of miners and hash rate recoveries are leading many industry analysts to believe that the worst is over, at least in terms of miner-related volatility.

Ethereum's hash rate has recovered somewhat from its recent drop. Source: The Block

Leading less-positive headlines is the news that the government of the United States plans on partially funding its high-profile infrastructure bill through ramped-up cryptocurrency-tax enforcement. According to a fact sheet from the White House:

"In the years ahead, the deal will generate significant economic benefits. It is financed through a combination of redirecting unspent emergency relief funds, targeted corporate user fees, strengthening tax enforcement when it comes to crypto currencies, and other bipartisan measures, in addition to the revenue generated from higher economic growth as a result of the investments."

Top altcoin gainers and losers: Small-cap tokens dominate

  • CLV/USDT +32.18%
  • DEP/USDT +21.04%
  • PERP/USDT +16.96%
  • LEO/USDT -12.89%
  • NDN/USDT -13.38%
  • CVT/USDT -17.82%

Altcoins with market capitalizations underneath $1 billion are dominating the leaderboard on OKEx today, per the exchange's default time settings. One must check far down the list to find the top-performing large-cap altcoin, ENJ, which has increased by less than 4%.

ENJ is the top-performing large-cap altcoin on OKEx today, though its gains are modest. Source: OKEx

BTC technical analysis: Sellers working hard

The price of BTC is struggling to overcome heavy resistance around 40,000 USDT, but buyers are still holding the price up and chewing through the sell-side supply. Should sellers continue to overpower the buyers, bulls will look for more support to come inside the four-hour ribbon of exponential moving averages.

OKEx's BTC/USDT 4h chart — 7/29. Source: OKEx, TradingView

ETH technical analysis: At risk of a breakdown, looking for buyers

The price of ETH is attempting to find buyers against BTC at the bottom of a large descending triangle. However, the four-hour EMA ribbon will look to act as resistance and as a place for eager short sellers to bet on a breakdown of the formation.

OKEx's ETH/BTC 4h chart — 7/29. Source: OKEx, TradingView

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.