- Bitcoin prices up three percent
- Bitmain plans boost the network’s hash rate
- Transaction volumes low but could surge once prices are above $4,200
Unexpectedly, Bitcoin (BTC) prices found support at Mar 5 highs as bulls flew back. This revival coincides with news of Bitmain plans of deploying 200,000 units as they plan to take advantage of low electricity cost during this summer.
Bitcoin Price Analysis
Well, after fears of a possible collapse were allayed in the Asian session when prices bounced off $3,900. With apprehensive bulls, Bitcoin had a bulwark with the news that Bitmain plans to unleash 200,000 units of their new AntMiner S11 and S15 as they take advantage of low electricity cost in China this summer.
Sources intimate with Bitmain plans told CoinDesk that “Bitmain has already started discussions and making deals with farms to host its equipment so that it can be fully prepared.” Their decision to scale up their mining activities despite current low Bitcoin prices will translate to a possible low side monthly profit of $7.7 million thanks to a drop of electricity costs from $0.06 to $0.037 during May’s rainy season according to data compiled by f2pool, the world’s third-largest mining pool.
At the same time, the network’s hash-rate will be bolstered by around 7.9 percent due to the injection of additional computing power.
After retesting the $3,800 mark, there have been a sharp turn off the 20-day MA and Bitcoin (BTC) prices are up three percent in the last day.
Prices are now back to green and with all-around excitement, today’s bar will most likely close as a bull. That means we shall have a three-bar bull reversal pattern off our breakout level at $3,800. However, while bullish as it is, the best approach is to wait for a firm break above recent accumulation.
As a result, aggressive traders should ramp up once prices edge past $4,200 or Mar 16 highs with high volumes above Mar 5. Such a move confirms the double bar bull reversal pattern of Mar 5-6 shall subsequently trigger demand with immediate targets at $4, 500—our main resistance level.
Although participation levels don’t reflect today’s wide trade range, what we do have is a three-bar bull reversal pattern off Mar 5 highs. If anything, that is bullish and accompanying today’s bar are high volumes that are most likely above those of Mar 25 but lower than Mar 5 and 21. Therefore, the best course of action is to wait for a break above $4,200. The breakout bar volumes must be above 10k of Mar 5.
Chart courtesy of Trading View