Technical analysis of BTC/USD for Jan 21, 2020

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Crypto Industry News:

The Bitcoin hash rate has reached a new one by marking the latest technical achievement of cryptocurrency. A new hash rate analysis by Glassnode shows that on January 7, the average has reached 119 hash quintillions per second – the best result ever.

Hash rate refers to the amount of computing power used by miners to validate Bitcoin’s Blockchain chain. The more power, the more hypothetically secure Blockchain is. The high hash rate can also be considered as an expression of mining attractiveness for participants.

Glassnode reading comes from calculating the moving average hash rate in one day. Although the hash rate cannot be measured accurately, the data supports other estimates showing that the metric has reached a new record in recent weeks and months.

Progress was rapid. According to Glassnode, an average low hash rate of 36 hash quintillions per second – which was the basis for the last increase – occurred at the end of April 2019.

This year, Bitcoin has already shown many signs of renewed bullish transformation. In addition to the hash rate, commentators highlighted increased trading activity among investors interested in Bitcoin futures.

Technical Market Overview:

After the BTC/USD pair has made a new local high at the level of $9,130, the bears reaction for a new high was to push the prices lower again and they have managed to hit the level of $8,405 on the way down. This level has been tested before and it is clear that the bulls will treat this level as an important short-term key support, so it is worth to keep an eye on the current situation on this market. Any violation of the level of $8,405 will lead to the sell-off extension towards the next technical support at $8,298 and below. For now the market is consolidating in a narrow range between the levels of $8,405 – $8,693, but the breakout can happen any time now.

Weekly Pivot Points:

WR3 – $10,362

WR2 – $9,728

WR1 – $9,214

Weekly Pivot – $8,735

WS1 – $8,034

WS2 – $7,406

WS3 – $6,911

Trading recommendations:

There is a possibility that the wave 2 corrective cycles are completed at the level of $6,345, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $7,582 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $10,278 is cleary broken.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis of BTC/USD for 21/01/2020:

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