FX.co ★ Technical Analysis of BTC/USD for April 19, 2021

Crypto Industry News:

Since April 15, the hashrate of the Bitcoin network has dropped by more than 49% after hitting a record 218 exahashes per second. Meanwhile, regional reports have noted that China is experiencing power cuts and "security checks" on the Xinjiang network.

On Sunday, the hashrate of the Bitcoin network saw a 49% drop after hitting its all-time high (ATH). The data shows that on April 15 the BTC hashrate increased to 218 exahashes per second (EH / s).

Primitive Crypto founder Dovey Wan also spoke about the crashes the next day. He reported that Xinjiang is facing a major break in the face of an explosion at one of its mines, adding that its BTC hashrate is dropping by almost 30% immediately. Wan is counting on things to return to normal within a week.

Co-founder of the Coinmetrics.io blockchain data aggregator, Nick Carter also tweeted about the situation in China and the declining hashrate, saying that Xinjiang's falling net and its impact on BTC hashrate are what economists call a "natural experiment."

Technical Market Outlook:

The BTC/USD pair has crashed towards the level of $50,000 (the actual low was made at the level of $50,666) during the weekend. The bulls however manage to bounce and the long lower shadow was made at the daily candlestick. The BTC is currently trading around the level of $57,000 and the next target for bulls is seen at the level of 50% Fibonacci retracement located at $57,717. The key short-term technical resistance is located at the level of $58,345 and the nearest technical support is seen at $55,501. The longer time frame chart still shows the up trend is intact.

Weekly Pivot Points:

WR3 - $77,128

WR2 - $70,098

WR1 - $62,765

Weekly Pivot - $56,867

WS1 - $48,657

WS2 - $42,481

WS3 - $34,723

Trading Recommendations:

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. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $50,000 is clearly broken on the e daily time frame chart.