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Technical Analysis of BTC/USD for July 8, 2020
Crypto Industry News:
For several weeks, Bitcoin miners have been holding more and more while the price is above $ 9,000. Meanwhile, Bitcoin mining may become more difficult within a week.
It seems that at a time when more Bitcoin miners were turning on their machines, increasing hashrate or network computing power, they are also holding more newly generated coins. Their net inventory over the past five weeks has reached 344 BTC ($ 3.2 million). By comparison, almost three weeks ago, on June 16, the same “collection” was 27 Bitcoins.
Consequently, the five-week MRI fell from 99.56% to 94.88%. If this indicator is below 100%, miners keep more Bitcoins and increase their inventories, and above 100% means they spend more.
Meanwhile, it is estimated that the difficulty of Bitcoin mining, which is a measure showing how difficult it is to compete for mining prizes, will increase again in seven days during the next difficulty correction, according to the top Bitcoin BTC.com mining pool. If estimates become a reality, they will raise the rate by 6% to 16.74 T – a new record of all time.
The difficulty exceeded 16 T previously only twice: 16.10 T in May and 16.55 T in March this year. This would not only be a new record, but would bring it closer to the never before reached 17 T. However, these estimates are likely to change as the adjustment date approaches. Bitcoin mining difficulty is adjusted every two weeks (more specifically every 2016 blocks) to maintain a normal 10-minute blocking time.
Technical Market Outlook:
After the BTC/USD pair has retraced over 50% of the last wave down and made a local high at the level of $9,329 the momentum has decreased and Bitcoin has stuck in a narrow range. Only a sustained breakout above the $9,400 would put the bulls back in control over the market again. This level is very close to the 61% Fibonacci retracement located at the level of $9,375, so breakout will require a lot of momentum, which for now is strong and positive. The local technical support is seen at the level of $9,240 and $9,154.
Weekly Pivot Points:
WR3 – $9,487
WR2 – $9,346
WR1 – $9,113
Weekly Pivot – $8,999
WS1 – $8,779
WS2 – $8,645
WS3 – $8,425
Trading Recommendations:
The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.
The material has been provided by InstaForex Company – www.instaforex.com
