Technical Analysis

BTC/USD Analysis – December 02, 2021

By LonghornFX Technical Analysis
Dec 2, 20213 min

Bitcoin Price Prediction

Bitcoin's price has failed to break through the $58,500 resistance level. BTC is gradually declining from the previous swing high of $58,890. Below the $58,000 level, there was a break. The price was trading below the 23.6 percent Fib retracement level of the upward advance from the swing low of $53,300 to the high of $58,890. Furthermore, on the hourly chart of the BTC/USD pair, there was a breach below a significant bullish trend line with support near $57,200.

Bitcoin is currently trading close over the $57,000 mark and the 100 hourly simple moving average. On the upside, an immediate barrier is near the $57,500 mark. The first significant resistance is located near the $58,000 level. When China escalated its hostilities against the crypto industry earlier this year, one metric that suffered from the crackdown was the Bitcoin mining hashrate, which fell by more than 50% during this period, owing to crypto miners being pushed out of the Asian country.

The hashrate of Bitcoin mining has recovered following the Chinese ban. With former Chinese miners finding new homes worldwide, Bitcoin mining hashrate has resumed its journey to the top, with available statistics indicating that the metric has risen by roughly 80% in the last five months.

According to Coin Metrics statistics, the Bitcoin hashrate was as low as 84.79 exahashes per second (EH/s) during the peak of China's crypto prohibition. That figure has now almost completely recovered, with Bitcoin's hashrate currently at 156.6 EH/s, after reaching a high of 167.18 EH/s on November 17.

According to a Kraken intelligence analysis, the network hashrate may reach a new all-time high sooner than expected due to the compute power deployed by miners.

BTC/USD Intraday Technical Levels

Support Resistance

55527.4 58761.4

54116.7 60584.7

52293.4 61995.4

Pivot Point: 57350.7

BTC/USD - Technical Outlook

The primary resistance is still around $58,500. A decisive break above the $58,500 resistance level could pave the way for more gains. The next significant obstacle is approaching the $60,000 mark, above which the price could continue to rise rapidly. The bulls' next target could be about $61,200.

If bitcoin fails to break over the $58,000 barrier level, it may begin a new downturn. On the downside, there is immediate support near the $57,000 mark. The first significant support is presently building between $56,800 and the 100 hourly SMA.

The next significant level of support is at $56,000. It is close to the 50% Fib retracement level of the upward advance from the swing low of $53,300 to the high of $58,890. A breach below the $56,000 support level might bring the price down to $55,500. Any further losses could precipitate a significant drop towards $52,000.


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