Bitcoin price continues to decline and touched has the $4,090 mark in Asia as Chinese mining pools are taking their ASICs down to stop further losses. Where is the BTCUSD pair now headed? The following technical analysis reveals.
November 23, OctaFX – The value of Bitcoin continued to plummet lower this week, with the world’s number one cryptocurrency falling within a touching distance of the $4,000 support level.
Bitcoin shed over thirty per cent of its market value as a number of important technical levels were breached below the psychological $5,000 level. The decline in the value of the BTCUSD pair and the broader cryptocurrency market has been blamed on Bitcoin Cash, as the world’s fourth-largest cryptocurrency recently split into two distinct entities.
Chinese miners are out of business
Chinese miners drop out of business as it is no longer profitable to mine cryptocurrency. According to the co-founder of F2Pool, one of the Chinese mining pools, the recent price collapse forced companies to switch thousands of miners off to stop losses.
"Tens of thousands of #bitcoin miners were shut down due to the recent market crash, according to the co-founder of F2Pool, one of the largest/oldest mining pools in China," he replied in the tweet to cnLedger.
BTCUSD technical analysis
- The BTCUSD pair is strongly bearish while trading below the $5,000 level, key support is found at the $4,000 and $3,300 levels.
- If the BTCUSD pair trades above the $5,000 level, key resistance is found at the $5,300 and $5,705 levels.
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