Hash Rate Bounces Back, will BTC Rate Follow Suite?Sep 27, 2019
The trading week is not over yet but we venture to say that it may become one of the worst weeks over the past few months. However, it is important to keep in mind that in July we witnessed an even worse wave of selloffs. The ongoing corrective decline is noteworthy not so much because of its depth but because it managed to break through the strong technical level of support of $9,300 (BTC/USDT).
The crash of BTC took place amidst the mere 7.4% decrease in the long positions volume and the 12.9% drop in the volume of short positions. This volume of short position liquidations is almost twice that of the liquidated longs. Consequently, we can conclude that the market is not in panic mode yet.
According to the data from CoinMarketCap, there has been no significant changes in the BTC dominance index. Over the nearly two months this indicator has remained within the 67.5%-71% bracket, which also signifies that there have been no dramatic changes in the market mood. The fact that the hash rate bounced back and reached its all time high is also good news.
After the breach of the lower boundary of the triangle ($9,300), the BTC/USDT pair price has already reached the top boundary of the wide accumulation area of $7,000-$8,000, so active sales are no longer advisable. On top of that, the technical indicator RSI 1D has already dropped below the 20 mark, which implies that the asset has been oversold.
Based on all of these considerations, it appears that the return to $8,800 is the most likely scenario.