Bitcoin price at risk as bearish divergence forms, hash rate falls

Bitcoin price remained in a tight range on Saturday as the hash rate fell, and bearish divergence formed, risking a bearish breakout. Bitcoin ( BTC ) was trading at $94,296 at last check as the market reacts to the latest report from the Bureau of Labor Statistics showing that the U.S. economy created over 256,000 jobs . The unemployment rate fell to 4.1%. As a result, American equities fell, with the Dow Jones and Nasdaq 100 indices falling by 697 and 317 points, respectively. As crypto.news expected, the bond market continued its sell-off, with the 30-year yield rising to 5.0%. The 10- and 5-year yields rose to 4.76% and 4.57%, respectively. The rising yields indicate that the market expects the Federal Reserve to maintain a hawkish tone, which typically affects risky assets like Bitcoin and altcoins. Source: CoinGecko You might also like: Bitcoin price is still bullish despite recent weakness: legendary trader Meanwhile, data by IntoTheBlock shows that Bitcoin’s hash rate has retreated in the past few days as its price has stalled. It had a hash rate of 750 TH/s on Saturday, Jan. 11, lower than the 30-day high of 911.88 TH/s and the 30-day average of 793 TH/s. A hash rate is an important number that looks at the speed at which mathematical puzzles in the network are being solved. Bitcoin hash rate | Source: IntoTheBlock More on-chain data shows that the number of active Bitcoin addresses has retreated to 775,000 from 900,000 on Monday, a sign that some traders have started to sell. For example, according to SoSoValue, all spot Bitcoin ETFs had outflows totaling $572 million in the last two consecutive days. Bitcoin price forms a bearish divergence Bitcoin price chart | Source: crypto.news The daily chart shows that Bitcoin is at risk of a bearish breakout. It has formed the risky head and shoulders chart pattern, whose neckline is at $90,952. This is one of the most popular bearish patterns in trading. Bitcoin’s Relative Strength Index and the MACD indicators have formed a bearish divergence pattern. The MACD’s histograms have moved below the zero line. Therefore, a break below the H&S’s neckline at 90,950 risks further downside. The first support of this will be the 200-day moving average at $78,285 followed by $73,985, the highest point in March last year. On the positive side, as we wrote earlier this week, Bitcoin price is forming a bullish pennant chart pattern on the weekly chart. That pattern will remain in play as long as it is above $90,000. You might also like: 3 reasons why Bitcoin price may surge to $123k in January