On D1, the picture has not changed much since last week. The pair is trading at the upper border of the descending channel between 100.0% and 61.8% Fibo. The quotations keep declining inside the channel with a possible aim at 61.8% Fibo. The MACD histogram remains below zero, which also signals a further decline. The signal lines of the indicator have formed a Black Cross, which is yet another signal of going down.
On H4, the perspectives are quite different from those on D1. The pair keeps trading under 38.2% Fibo; the quotations remain under the horizontal resistance level. A decline currently looks more probable than growth; the aim is at 0.0% Fibo. The Stochastic is pushed towards the overbought area by a weak impulse, which means buyers are losing power. If a Black Cross forms in the overbought area, this will be yet another signal of further decline.
There has been much news about the BTC rate these days, however, it has little influence on the behavior of the leading cryptocurrency. Nonetheless, there is one thing that may attract investors 0 if the story ever continues.
The Inner Mongolia Autonomous Region of China has encountered an increased risk of bubonic plague epidemics. The region has implemented the third level of epidemiological threat, which means hunt has been band, and the population must report any cases of suspected plague or fever.
Why should this be of interest to BTC investors? The thing is that many mining farms and production of mining equipment are situated right in China. The percentage of Chinese miners in the overall number of miners in the world remains high. So, if someone starts buying or selling the BTC massively here, the crypto market will definitely notice it.
The risk of a new virus from China potentially means the closing of mining farms. The good news is that such enterprises work rather autonomous, so there has to be a really serious reason for closing them, and there are no such reasons yet.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.