FX.co ★ Technical Analysis of BTC/USD for August 4, 2021

Crypto Industry News:

Marathon Digital announced the purchase of additional Bitcoin mining hardware from Bitmain. According to the published announcement, the American mining giant has finalized the purchase of 30,000 Antminers S19j Pro for $ 120.7 million.

This news signifies a continued increase in Marathon's Bitcoin mining hardware, where Bitmain is expected to complete the delivery of new platforms by June 2022.

Together with 30,000 platforms, the company's total Bitcoin miners will exceed 133,000, providing an estimated hash rate of 13.3 exahashes per second (EH / s). At 13.3 EH / s per second, Marathon will effectively control over 12% of the current Bitcoin mining hash rate.

Technical Market Outlook:

The BTC/USD pair rally above the $40,000 had been terminated at the level of $42,404 and the bears had managed to push the price out of the ascending channel towards the technical support seen at the level of $38, 261. This level had been broken as well, the new local low was made at the level of $37,541 (at the time of writing the article). The next target for bears is seen at the level of $36,552. This level is very close to the 50% Fibonacci retracement seen at $35,798, so a market reaction is expected at this level.

Weekly Pivot Points:

WR3 - $53,201

WR2 - $47,804

WR1 - $45,105

Weekly Pivot - $39,794

WS1 - $37,184

WS2 - $31,598

WS3 - $29,174

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).