Coinspeaker
Bitcoin Price Below $11,800 Now, BTC Still Looking for Support

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex.

• Analysis of Bitcoin price movements now.
• Climate in China is against BTC.
• Over 5 months, BTC added 225% but Buffett is not buying it.

As we can see in the weekly chart, now Bitcoin price is correcting within the uptrend. At the moment, the asset continues growing towards the resistance area, which is close to 100% fibo. The MACD histogram is above 0 – this might be a response to a huge amount of purchases, which forced the asset growth. After forming a “Black cross”, the indicator’s signal lines continue crossing, thus hinting at a possible correction before further growth. The Stochastic indicator continues its slow growth towards the “overbought area”, which is another signal for further increase of the digital coin.

Photo: RoboForex / TradingView

The daily chart is almost identical to the weekly one: BTC/USD continues the correction within the ascending tendency. The downside correctional target is the support area and the rising channel’s downside border. The MACD histogram is above 0, thus raising the prospect of further ascending movement after the correction. The indicator’s signal lines are rising, which is one more signal for further uptrend. Taken together, weekly and daily charts are still indicating further growth after the pullback.

Photo: RoboForex / TradingView

In the H4 chart, the situation is quite similar. The cryptocurrency is forming a correction towards the horizontal support level. The Stochastic indicator has formed a “Black cross” inside the “overbought area”, which is another signal in favor of the correction.

Photo: RoboForex / TradingView

Rainstorms in China, Sichuan to be specific, made the BTC network hash rate fall and resulted in a 20% drop of Major Chinese bitcoin mining pools. Due to heavy rains, this region is experiencing difficulties with the electricity supply and, as a result, massive drops in mining productivity. Floods in Sichuan are not a surprise to anyone because they are pretty common for this region. By the way, it’s a rainy season there now, so one should ready for it.

A world-famous investor, Warren Buffett will start buying BTC when it reaches $50,000 – said Max Keiser, гthe head of Heisenberg Capital. His words don’t look too reliable because Buffett didn’t have a taste for risky ventures and never bought assets at their highs. However, the recent BTC dynamics make very few people feel no concern for it and force many emphatic public statements. Over the last 5 months, the BTC rate expanded by 225% and its share on the cryptocurrency market is almost 60%. This week, BTC reached the highest level since July 2019 at $12,257.

Bitcoin Price Below $11,800 Now, BTC Still Looking for Support