Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for August 17, 2021

Crypto Industry News:
The difficulty of BTC mining has taken another, second jump after the fall in mid-July. The bitcoin mining ecosystem is witnessing a further increase in mining difficulties, which after China began operations that negatively affected the operational dimension of most miners running their businesses in the Middle Kingdom.

The shutdown of around 90% of China's bitcoin mines has pushed the hash rate down to historically low levels. Indications in the range of just over 101 TH / s have not been observed for over a year.

Another difficulty correction is expected on August 27th and will raise the mining difficulty to around 15.63TH. Prior to the crackdown on local miners in China, Bitcoin mining difficulty had peaked at 25T. The decline in the number of miners in China reduced competition to confirm blocks. This enabled those miners who, in the face of all the confusion, to continue their activities to obtain greater returns.


Technical Market Outlook:
The BTC/USD pair bounce from the level of $45,710 was strong and bulls tested the recent high seen at the level of $48,000. Nevertheless, the rally has ended with a Shooting Star candlestick formation, so it might be a time for another pull-back during the up trend. Please keep an eye on the level of $45,043 because any violation would be negative for bulls and could deepen the correction. The immediate technical support is seen at the level of $46,719.

Weekly Pivot Points:
WR3 - $54,673
WR2 - $51,130
WR1 - $49,247

Weekly Pivot - $46,037
WS1 - $43,891
WS2 - $45,515
WS3 - $38,510


Trading Outlook:
The bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $47,000. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).






Sebastian Seliga
Analytical expert
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