Crypto Industry News:
The shutdown of around 90% of BTC mines in China contributed to a record low hashrate. Such levels (just over 101 TH / s) of bitcoin mining have not been seen for over a year.
Although the hashrate level affects the security of the entire blockchain network and the low value can be a concern, it should be remembered that Chinese miners will resume their activities in other countries in a few weeks. Thus, the situation should normalize.
The time-consuming and costly transfer of BTC mines from China to other countries is a consequence of the Chinese government's decision. Despite the fact that the mines have not yet completed the relocation of equipment, opinions are beginning to appear criticizing China's decision. After all, the country until recently had about 50% of the network's shares. At the same time, this is great news for people who were afraid that so much power is in the hands of one country. Now companies specializing in bitcoin mining are moving to Kazakhstan and the USA, among others.
Technical Market Outlook:
The BTC/USD pair has bounced from the level of $30,142 and no new lower low was made. Currently, the bulls are trying to hit the level of $35,434, which is the local high from 25th June. If this level is violated, then the next target for bulls is seen at the level of $36,610, which is the 61% Fibonacci retracement of the last wave down. The nearest technical support is seen at $33,602 and the technical resistance is located at $34,834.
Weekly Pivot Points:
WR3 - $42,645
WR2 - $39,211
WR1 - $35,772
Weekly Pivot - $32,390
WS1 - $29,147
WS2 - $25,680
WS3 - $22,298
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 $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).
