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Technical analysis of ETH/USD for Oct 22, 2019
Crypto Industry News:
In a recent press release, Bitmain management confirmed that Bitcoin’s latest mining farm was launched in Rochdale, Texas. The 33,000-acre site will initially house a 50-megawatt farm, but its total capacity may increase to six-fold to 300 megawatts in the future, says Bitmain. If it reaches these levels, the Texas facility would become the largest mining farm in the world.
“We are excited to launch this facility, which is essential for Bitmain’s global expansion plans. Stable and efficient energy resources in Texas are fundamental to the inevitable growth of the cryptocurrency mining industry,” said Clinton Brow.
Work began in 2018 on a 25-megawatt project. The operations will be a joint Bitmain and DMG program that will provide hosting and management services on a daily basis.
The announcement occurs at a crucial moment for Bitmain, which is still implementing its IPO in the United States. In 2019, the overall share of Bitmain in the Bitcoin hash rate also decreased. As noted by Christopher Walken, co-founder of the HASHR8 mining startup, Bitmain pools currently account for about 27% of the total. In January this figure was close to 42%.
Technical Market Overview:
After the recent bullish breakout above the short-term trendline resistance, the ETH/USD pair has made a local high at the level of $177.10. Nevertheless, the bears have increased the activity immediately and now are trying to test the breakout from above. Will that be enough to continue a rally higher or is it just another false breakout? The next few hours might give the answer to market participants. Please keep an eye at the level of $163.98 because it is the key short term technical support for bulls.
Weekly Pivot Points:
WR3 – $203.55
WR2 – $195.01
WR1 – $184.09
Weekly Pivot – $175.68
WS1 – $163.10
WS2 – $154.16
WS3 – $142.73
Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.
The material has been provided by InstaForex Company – www.instaforex.com
