Technical Analysis of BTC/USD for 27/04/2020:

Crypto Industry News:

The main producer of Bitcoin mining chips, Ebang, has made the first IPO offer worth $ 100 million to the US Securities and Exchange Commission (SEC). The company is trying to distribute class A shares with a nominal value of $ 0.00013 per share. The company plans to appear on the Nasdaq global stock exchange or the New York stock exchange under the slogan EBON. These plans take place almost two years after the company attempted to launch the $ 1 billion initial public offering in Hong Kong. In 2019, 82% of Ebang's revenues came from ASICs and wireless integrated circuits for miners.

Ebang's annual revenues were $ 109 million last year. Falling demand for mining equipment caused a 66% drop in growth from $ 319 million in 2018. Gross profit fell from $ 24.4 million in 2018, to $ 30.6 million gross loss last year. Sales of Ebang coins dropped from 415,930 at an average price of $ 737, to 289,953 coins for $ 304.

Ebang claims that the demand for its products is directly related to Bitcoin price fluctuations, as the market requirements and unit price of Bitcoin mining machines are correlated with the economic returns of these machines, and above all depends on the price of Bitcoin. The increase in BTC will generally increase market demand for mining machinery, which in turn will allow Ebang products to be valued higher and vice versa. The documentation shows that Ebang has completed the design of its own 8 nm and 7 nm ASC systems, adding that it is ready for mass production of 8 nm units when, he said, market conditions will become appropriate.

Technical Market Outlook:

The BTC/USD pair has been testing the recent swing high located at the level of $7,707 for all the weekend and is currently hovering around this level. In a case of a further breakout, the next target is seen at the level of $7,897, but there is a clear bearish divergence between the price and momentum oscilator at current levels. If bears will push the prices lower, they can hit the next techncial support located at the level of $7,385 and below.

Weekly Pivot Points:

WR3 - $9,046

WR2 - $8,348

WR1 - $8,040

Weekly Pivot - $7,352

WS1 - $7,064

WS2 - $6,356

WS3 - $6,047

Trading Recommendations:

The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in Bitcoin and treat BTC as a digital gold. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.

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