Technical Analysis of BTC/USD for August 24, 2020

Crypto Industry News:

Sergio Dermain Lerner, a researcher known for analyzing the mining yields of the first Bitcoin (BTC) miner, turned his attention once again to the Bitcoin blocks mined by Satoshi Nakamoto. His research is based on the analysis of the nonce block nonce irregular pattern of the least significant bit (LSB).

In June last year, Lerner published a blog where he expanded and continued his original 2013 research. He suggested that for some unknown reason Satoshi Nakamoto was holding back from mining in the first five minutes of the inter-block break. Other researchers also developed Lerner's research. TechMiX has shown that all the blocks mined by Satoshi can be grouped into five buckets, based on the frequency distribution of the nonce LSB values.

With each subsequent attempt to solve the "mining puzzle," nonce increases. Apparently, Satoshi's gear was not making use of all the available nonce space, focusing only on the limited range. Lerner's latest research indicates that Satoshi, instead of enlarging - decreased the value of nonce:

"It turned out that re-mining Satoshi Nakamoto blocks reveals a strong tendency in the Patoshi algorithm to select higher nonce values when scanning an internal nonce number. This trend suggests that the number of nonce has been reduced, which is the opposite of what client does in version 0.1. "

This leads to an even more interesting conclusion that perhaps ends the discussion of the type of equipment Satoshi Nakamoto used:

"Since the nonce imbalance decreases when analyzing the two sub-ranges together, this suggests that Patoshi scanned 5 sub-ranges in parallel, but each sub-range internally - sequentially. This contradicts the theory that Patoshi deployed the first mining farm of 50 independent computers [...] and supports the theory that Patoshi simply ran multiple threads on a high-end CPU. "

If Lerner's conclusions are correct, it would give credence to the hypothesis that Satoshi Nakamoto was one person and not a group of people. It would also mark another nail in Craig Wright's claim that he would be the creator of the cryptocurrency. Wright has repeatedly pointed out that dozens of computers are to be used to mine early blocks

Technical Market Outlook:

The BTC/USD pair has bounced from the level of $11,358 and broke through the short term trend line resistance around the level of $11,450. Despite the fact, that the BTC is clearly trying to bounce higher, the market is still trading below the supply zone located between the levels of $12,269 - $12,431. The nearest technical resistance is seen at the level of $11,646 (for intraday traders) and the level of $11,358 will act as a support from now. The key short-term technical support is seen at the level of $11,062.

Weekly Pivot Points:

WR3 - $13,245

WR2 - $12,828

WR1 - $12,122

Weekly Pivot - $11,728

WS1 - $11,022

WS2 - $10,628

WS3 - $9,978

Trading Recommendations:

The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic correction are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,463.


The material has been provided by InstaForex Company -