The Bitcoin is still trying to make its way to the round number of $4,000.
The Bitcoin is still trying to make its way to the round number of $4,000, says Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
- The number of search queries on Bitcoin is going down.
- Bitcoin and other crypto futures are in high demand.
- Chinese miners buy mining equipment, expecting the electricity costs to go down.
According to Google Trends, the number of search queries on Bitcoin has hit its Q2 2017 low. The BTC cost then much less than now, while the demand was mostly formed out of large investors. The current demand fall is likely to be related to the long downtrend.
There is still some demand in the markets, though, as the BTC is rising and getting ready to hit $4,000, while the futures trading volume is also quite high.
According to Crypto Facilities, the trading turnover of the crypto futures, including those on Bitcoin, Ethereum, and Ripple, rose by over 500% in February, reaching $1B, with the liquidity constantly rising, too. Most clients that come to Crypto Facilities are from the EU and Asia; there are hardly any US citizens among them.
This demand comes not only from the general derivatives’ popularity, but also from the better business the crypto platforms are doing. Kraken bought Crypto Facilities some time ago, which secured a good number of clients.
Meanwhile, the Chinese miners are very actively buying used mining equipment. The energy costs are expected to get reduced, which will make crypto mining more profitable. Currently, the profits are scarce, but the market is still optimistic about mining.
Technically, the BTC is trading inside a midterm ascending channel on H4. In the short term, meanwhile, the price reached 61.80% Fibo and then went sideways. Both the local support at $3,686 and the resistance at $3,910 may get broken out. In the latter case, the price may then hit the current high at $4,188.40, and then the upper channel boundary at $4,532, which lies almost at 38.20% Fibo. Conversely, breaking out $3,686 will push the price to the midterm support at $3,463. The MACD lines are down, which means a descending move is more likely; however, this may well change once a golden cross has been formed.
On H1, the BTC is approaching the correction channel resistance. The Stochastic is overbought and may form a black cross to signal a downtrend. The breakout of the local support at $3,840 may push the price to the lower boundary at $3,686.
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.