BTCUSD – Weekly outlook for Bitcoin Price – 24th June 2021

Bitc0in Price Forecast for Bitcoin

Introduction

Most crypto brokers trading in the Bitcoin market is also getting a taste of the current bearish state of the market. 

The market has been facing challenges from the Chinese government as they see the digital coin as a threat to the fiat currency and also as pollution to the environment. 

However, steps are taken by the various mining firms to secure a friendly environment for their mining program while they work towards the preservation of the environment.

Bitcoin vs USD Technical Analysis

Monthly Chart

Bitcoin vs USD monthly chart - 24th June 2021

Monthly Resistance Levels: 65000, 75000

Monthly Support Levels: 35000, 30000

A corrective stage of Bitcoin has established the ATH of the market at the 65000 resistance zones, making history in the digital market. Recent events around the digital asset have caused it to lose over 50% gain it had from the peak of the COVID-19 pandemic. 

The Chinese government cut down the supply of electricity to the region where most of the mining machines are used to generate hash rate, and it led to the initial all-in bitcoin price before the pressure continues on the mining firms.

Mining firms are moving to another part of the world and the advantages of decentralization will help the process of mining hashrate experience little or no difficulty as long as they put into consideration the environmental regulations. 

Weekly Chart

BTCUSD weekly chart - 24th June 2021

Weekly Resistance Levels: 65000 

Weekly Support Levels:  35000, 30001

The BTCUSD price had a weak bounce from the support level of 30000 because of the dynamic events happening around the bitcoin which has also affected other digital assets. 

If the Buyers are few in the market, we may see the price dip lower than the 30000 levels. We may also see the price consolidates around the support zone if the uncertainty in the market is high.

 Daily Chart

Daily Resistance 64971, 59175, 40000

Daily Support 30010

The daily chart had been bearish since the sellers could hold their position after turning the trend from the bullish run, which had lasted for weeks. 

The bullish setup from the support level of 30010 has not gotten stronger momentum to take the price higher above the 40000, if the institutional interest is still at that zone, we will see bitcoin rise in value towards the resistance level of 64970 its ATH. 

However, if the support level of 30010 should be broken we shall see the price dropping to the previous ATH of 2017 (19000).

H4 Chart

4 Hour Resistance 40000

4Hour Support 31059, 33912

From the 4-hour chart, we can see that the market structure has been lower highs and lower lows, showing a strong bearish trend. A psychological zone in the market is the support level. 

The Long position traders are waiting for strong fundamentals and genuine reasons to open long position trades. However, if the Bull’s momentum can push the price above the 40000 levels we shall see more participants open a long position for another bullish run. 

Bullish Scenario:

If the Buyers momentum needs to overcome the support zone on the daily chart to convince traders that the zone is established and we may see bitcoin price rise higher and higher for another long run rally from the low of the current price.

Bearish Scenario:

The 4hour time frame tells us that the market participants are still bearish on BTC/USD on the time frame for another possible push down below the support zone of 30010.

Bitcoin BTC News Events 

BTC Hash rate Drops

The number of miners that are out of commission in China has affected the bitcoin hash rate and it has falling low. The rate fell below 105 billion in the past two days in a row as of this report. The seven-day average dropped to 129.1 million exahashes this week, and it is the lowest hash rate in the last 6 months. 

The bitcoin hash rate is the total computational power that was used to secure transactions on the blockchain. 

This situation is the result of the crypto mining ban in China, which has led to a shutdown of mining farms in the region. 

The numbers of bitcoins mined per block have fallen to 6.25 since the last halving took place. About 144 blocks mined daily will be added up to about 900 bitcoins mined. With the current events, the number of BTC issued daily has fallen because a lot of miners are offline and not enough blocks are being hashed since miners cannot get enough computational power to solve the cryptographic puzzle, a requirement for processing Bitcoin transactions. 

In the last 24 hours at the time of this report, about 700 bitcoins were issued into the market, that is a 22% decrease in the number of bitcoin mined.

Conclusion and Projection

The upcoming of a new location for the hash rate mining firm is important and is good news for cryptocurrency traders and investors. We expect the development to boost the strength of the bitcoin value in the coming weeks.

I'm based in London ( England, UK )
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.

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