Technical analysis of Bitcoin for 11/06/2019:

Crypto Industry News:

The research company CoinShares in its semi-annual mining report estimates that 74.1% of Bitcoin output is currently powered by renewable energy.

The report also states that "at current prices, the average miner is highly profitable, and even older tools and producers with high operating costs are now able to achieve a positive return on investment". The document also notes that Bitcoin extraction operations are concentrated where there is a lot of renewable energy.

The correlation between Bitcoin extraction and renewable energy means that Bitcoin mining "drives more renewable energy than almost any other large-scale industry in the world." The report also notes that since November last year the total network hashing has increased from 40 quintals hash per second (EH / s) to 50 EH / s.

This means that - during this period - the increase in computing power invested in maintaining the network was slower than the 10-year average, but in line with the average five-year average.

The report also indicates that the temporary drop in the hash rate (by about 40%) registered at the end of last year was the first recorded case in which there was a significant and long-lasting decrease in the network's computing power.

CoinShares believes that the recent increase in the Bitcoin hash rate is caused by the re-inclusion of old mining equipment after the higher price made them profitable and the implementation of the next generation of more efficient ASICs.

Technical Market Overview:

The BTC/USD pair bounced from the technical support at the level of $7,486 as anticipated, but was capped again at the level of $7,979. Currently, the market is consolidating the recent gains in a narrow horizontal range, but it does not look like it is about to go down. On the contrary, the price might be ready for another leg up as the momentum is increasing. The next target is seen at the level of $8,102 and $8,241.

On the other hand, any violation of the level of $7,405 will lead to the sell-off towards the level of $6,986.

Weekly Pivot Points:

WR3 - $9,578

WR2 - $9,128

WR1 - $8,319

Weekly Pivot Point: $7,869

WS1 - $7,020

WS2 - $6,556

WS3 - $5,664

Trading Recommendations:

The best strategy in the current market conditions is to trade in the direction of the short-term trend, which is still down and the corrective cycle continues. All the local bounces and correction should be treated as another opportunity to open the sell orders for a better price. Please notice, the larger time frame trend is up and there are no signs of any trend reversal, this is only the correction during the up trend.

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The material has been provided by InstaForex Company - www.instaforex.com