FX.co ★ Technical Analysis of BTC/USD for April 4, 2022

Crypto Industry News:

After Bitcoin miners mined 19 million BTC in circulation on Friday, the difficulty of mining the BTC network reached an all-time high of 28,587 trillion.

The Bitcoin network difficulty correlates with the computing power required to mine BTC blocks, which currently requires an estimated hash rate of 201.84 exahashes per second (EH / s), according to data from Blockchain.com.

A higher hash rate provides resistance to double spending attacks, i.e. reversing BTC transactions in the chain, by contributing to at least 51% of Bitcoin's hash rate.

On March 4, roughly a month before reaching an all-time high, the BTC network difficulty fell slightly from 27.96 trillion to 27.55 trillion, which eventually dropped to 27.45 trillion on March 30.

With only 2 million BTC left and the increasing influx of Bitcoin miners from around the world, the BTC network is expected to grow stronger. It is estimated that the remaining 2 million BTC (out of a total supply of 21 million) will be finally extracted by around 2140.

Technical Market Outlook:

The BTC/USD pair rally was capped after the Shooting Star candlestick pattern was made at the level of $47,427 and now the pair consolidating the recent gains. The nearest technical support is seen at the level of $45,836 and $44,758 and those levels are being tested by bears. The strong and positive momentum supports the short-term bullish outlook, so as long as the price stays above the technical support seen at $44,231, the bulls are in control of the market.

Weekly Pivot Points:

WR3 - $52,161

WR2 - $50,140

WR1 - $48,553

Weekly Pivot - $46,309

WS1 - $44,444

WS2 - $43,324

WS3 - $40,487

Trading Outlook:

The market still keeps trying to bounce after over the 60% retracement made since the ATH at the level of $68,998 was made. The bulls are now approaching the game changing technical supply zone seen between the levels of $52,033 - $52,899. When this zone is clearly broken, the BTC is back to the up trend, otherwise the bearish pressure might push down the BTC towards the level of $29,254.