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- Tech analysis of BTC/USD.
- The market may face the deficit of the BTC.
- The BTC hash rate has reached a new high.
On Thursday, October 15th, the key cryptocurrency pauses its decline – the market is busy consolidating. The cryptocurrency is generally trading at 11,360 USD.
On W1 of the Bitcoin, not much has changed. The pair keeps developing an uptrend and is currently performing a bounce off 61.8% Fibo, which signals further growth to the target level of 100.0% Fibo. The MACD histogram is positive, giving yet another signal for the growth. The signal lines keep intertwining upon forming a Black Cross, increasing the chances for further growth. The Stochastic is slowly moving towards the overbought area, increasing the chances for further growth.
On D1, the technical picture looks almost identical to that on W1: BTC/USD is continuing the uptrend. The aim of the growth from the lower border of the channel is still 12,700 USD. The MACD histogram is at zero, which means that further growth is possible. The signal lines of the indicator are forming a Black Cross and keep going down, signaling another minor correction. The W1 and D1 charts contradict each other. Still, the scenario of a correction that precedes further growth looks more probable.
H4 promises flourishing growth after the correction. The Stochastic has formed a Black Cross in the overbought area, giving additional confirmation of the correction before further growth. The aim of the growth here is the upper border of the ascending channel formed on H4.
In the global DTAP Capital fund, they say that quite soon, investors and traders might face a shortage of the BTC because large companies increase their stocks of the cryptocurrency. They came to this conclusion right after Grayscale Investments Trust published their report for the 3rd quarter of 2020, from where we can find out that the company has accumulated some 1.05 billion USD in the BTC. The annual report shows that the company increases its stock of the BTC quarter to quarter. For example, in the first quarter, it bought 27% of the mined BTC, in Q2 – 70%, in Q3 – 77%.
According to the fresh data, the BTC hash rate has reached record values. Compared to the levels at the beginning of this year, it has increased by 36%. Not so long ago, market experts warned of the so-called “mining death spiral”: after the reward per mined block was decreased in May, mining could become unprofitable, but this never happened.
Investors turn to the BTC more and more often due to worldwide inflation and troubles around fiat assets that have suffered a lot in the coronavirus crisis.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
Any predictions contained herein are based on the author's 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.
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