The basis of bitcoin rate

On the weekly chart, Bitcoin is forming a correction against the background of the development of upward dynamics. At this stage, quotes continue to rise to the resistance level located at 100% on the Fibonacci scale.

The histogram of the MACD indicator has moved into the positive zone – most likely, this is a reaction to a large number of purchases, which provoked an increase in the value of the asset. Signal lines of the indicator continue to intertwine after the formation of the “Black Cross”, which, in turn, indicates a possible correction before continuing the rise.

The Stochastic indicator continues to grow slightly into the overbought area, which opens up an opportunity for further growth in the rate. On the daily chart, the technical picture of BTC/USD looks almost identical to the weekly one: the pair continues to correct after rising. The target mark for the decline is the support level and the lower border of the ascending channel.

The MACD histogram is in the positive sector, increasing the chances for the continuation of the upward impulse after the correction. The indicator signal lines are showing growth, which serves as an additional signal in favor of the continued development of the upward dynamics.

Together, the weekly and daily charts continue to signal an increase in the price of bitcoin after a correction, says Dmitry Gurkovsky, Lead Analyst at RoboForex. On the H4 chart, the prospects for BTC/USD are similar to those of the higher timeframes. The pair is forming a correction to the horizontal support level.

The Stochastic indicator has formed a “Black Cross” in the oversold zone, giving an additional signal in favor of the quotes correction. Floods in China, and more specifically in Sichuan province, contributed to the fall in the hash rate of the BTC network. We are talking about reducing the productivity of the main mining farms by an average of 20%.

Heavy rains in the region, where many of BTC’s manufacturing facilities are located, have started to have problems with the supply of electricity. This contributed to the drawdown in mining performance. Floods in Sichuan province are not surprising to anyone – this is quite typical for this area. Now the rainy season is just beginning there, and you need to be ready for this.

World renowned investor Warren Buffett will start buying when the BTC rate reaches $50,000, Max Keizer, head of Heisenberg Capital, said. The comment does not seem entirely credible, because Buffett has never had a penchant for adventure and certainly did not buy assets at their peak. But the latest dynamics of the BTC rate leaves few people indifferent and only contributes to new bright statements.

Over the past five months, the BTC rate has grown by 225%, and the market share that remains for BTC is estimated at almost 60%. This week, the value of the cryptoasset peaked since July 2019 at $12,257.

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