On Thursday, October 29th, the BTC keeps growing, generally trading at $13,184 USD.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
- Tech analysis of BTC/USD
- The producing power of the BTC network keeps falling.
- The BTC is still considered a bubble.
On W1, the BTC keeps developing an uptrend, currently testing 100.0% Fibo. The aim of the correction is 61.8%. At the same time, the MACD histogram is positive, supporting further growth of the asset. The signal lines of the indicator keep intertwining upon forming a Black Cross, increasing the chances for the development of the uptrend. The Stochastic lines are slowly moving in the overbought area, giving signs of a soon correction. Judging by all the factors, we may presume that after the correction, the pair will go on with the uptrend.
On D1, the tech picture of the BTC/USD pair is almost identical to that on D1: the pair is forming a correction of the uptrend. The aim here is on the support level at $121,800 USD. The MACD histogram is above zero, which possibly indicates further growth. The signal lines have formed a Black Cross and keep growing, suggesting the development of the uptrend. Currently, W1 and D1 demonstrate more or less similar pictures. At this stage, a correction before further growth looks more probable. The aim of the uptrend is $14,000 USD.
On H4, the perspectives of further growth after a correction are equally bright. The Stochastic is near the overbought area, giving another signal of a correction before the development of the uptrend. The aim of the growth is again on $14,000 USD.
After the rainy season ended in Sichuan (China), the cost of electricity grew significantly, which dropped the hashrate of the BTC by 27% for 4 days. Sichuan has several hydroelectric stations. The growth of the electricity price led to a seasonal decrease in the BTC hashrate: at this time, miners switch off the equipment and transfer their powers to regions with more affordable electricity prices, first of all, to Inner Mongolia or abroad.
Time passes, the market changes but the BTC still has a reputation of a bubble. The head of Euro Pacific Capital thinks that the BTC miners are overconfident and more sure of the constant growth of their assets than market players used to be before the dotcom crisis in 2001.
Mr. Schiff compares the BTC to famous market bubbles and blames the BTC for being the largest one ever seen by the market. We have long been hearing Schiff’s point of view – he is one of the main critics of the cryptocurrency.
For this article, we’ve used BTCUSD charts by TradingView.
Disclaimer: Any predictions contained herein are based on the authors' particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Dmitriy Gurkovskiy is a senior analyst at RoboForex, an award-winning European online foreign exchange forex broker.