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Technical Analysis of BTC/USD for January 17, 2022

Relevance up to 09:00 2022-01-18 UTC+00

Crypto Industry News:

Bitcoin’s hash rate has returned to its highest levels, while amidst the low price, Block CEO Jack Dorsey has confirmed the creation of an open-ended bitcoin mining system.

The BTC space continues to surprise and stun both critics and fanatics. Kazakhstan, the second most important BTC mining country, experienced an internet outage last week due to social unrest. However, the hash rate fell by no more than 13.4% before reaching record levels again.

As shown in the data below from Glassnode, with a price in the $ 42,000 range on Thursday, the average hash rate reached 215 million terahas per second. Bitcoin miners continue to show resilience, and as Fidelity Digital Assets noted, the network is even “more widespread around the world.”

The media previously reported that Block will develop open-source bitcoin mining systems in 2022 based on job advertisements that appeared on LinkedIn. Dorsey confirmed his suspicions on Thursday, retweeting comments from Thomas Templeton, Block CEO.

Technical Market Outlook

The BTC/USD pair has been seen trading inside a narrow range during the weekend and it looks like the market is consolidating the recent gains before the next up wave will be triggered. So far the bulls have managed to retrace 38% of the last wave down, but this might be just the beginning of a larger rebound towards $47,293 (61% Fibonacci retracement level). The momentum is hovering around the level of fifty, so it is another clue of incoming bigger move on Bitcoin.

Weekly Pivot Points:

WR3 – $50,044

WR2 – $47,124

WR1 – $45,231

Weekly Pivot – $42,290

WS1 – $40,477

WS2 – $37,504

WS3 – $35,607

Trading Outlook:

The ABCxABCxABC complex corrective cycle is still in progress and is much more complex and time-consuming than anticipated. According to the long-term charts the bulls are still in control of the Bitcoin market and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $39,474 is clearly broken on the daily time frame chart (daily candle close below $39,000 would be considered as a long-term trend change due to the lower low placement).

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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