Market Analysis: BTC's total network computing power is about to reach a historical high. Can the market still sprint upward?

With the rapid rise in BTC prices, the payback period for BTC miners is also shortening rapidly. In addition, the arrival of the flood season has attracted a large number of mining machines to restart. In two days, the difficulty of the entire BTC network will increase by 9.6%. By then, the computing power of BTC will exceed the highest computing power of 53.33EH/S on October 4 last year, thus reaching a historical high.

Last year, BTC's hashrate dropped sharply from October due to the dual impact of its sharp drop in price and the BCH hashrate war. In mid-November, BTC officially fell below $6,000, and bottomed out at $3,200 in mid-December. From the BTC mining difficulty curve above, we can also see that during the period when BTC fell below $6,000, the mining industry also experienced a significant market cleanup, because before BTC broke $6,000, the market estimated the cost of BTC mining to be about $6,000. Once BTC fell below this level, a large number of BTC mines would not be able to maintain and would choose to shut down mining machines. Therefore, there were many news reports on the market at that time that mining machines were sold by pound. As time goes by, looking back on that period, the entire market was surrounded by a pessimistic mood. Even after hitting the bottom of $3,200, many people believed that BTC would fall below $3,000. Now BTC has experienced several months of continuous growth, and has nearly doubled from the bottom of $3,000. BTC's computing power is about to return to its high point. The bullish sentiment in the market is gradually getting stronger, and the market trend will also make a choice at this time.

1BTC

Today, Bitcoin led the market to a small correction, reaching the lowest point of $8,425. It is currently maintaining a slow upward trend, while the mainstream echelon rebounds far more than Bitcoin. This is probably because the retail investors who were short of positions in the early stage and had the mentality of missing out on opportunities looked at the correction and then covered their positions, and the main force would also use this to start slowly selling. The current market is no longer the same as at the beginning of the year. At that time, after a continuous wave of pull-ups, there was often a guillotine. At that time, the main force's mood to harvest chips was very serious. This wave of market has lasted for so long, and it takes a long time for the main force to sell, including the long position on the contract to turn short. However, as long as it involves high-level shipments, the psychology of retail investors will continue to be used. This is why there are always some "history repeating" on the K-line. For example, many people compare the current trend with 2015, or compare the trend of Bitcoin with gold, and find that the K-line has similarities. In fact, all of this is a high degree of overlap in market sentiment. Back to the market, since the Bitcoin price’s correction is not very deep and the outflow of funds is limited, the overall trend is judged to be a central oscillation at the 30-minute level. The response strategy is mainly to keep a bottom position and wait and see.

Today's analysis: Bitcoin slowly rebounded after testing $8,400 today, but the strength of the pullback is not very strong. Today, I believe that Bitcoin will continue to consolidate, and the consolidation range is [8,400-8,800] US dollars. After the consolidation is over, we need to guard against the risk of a high and a low.

2 Mainstream echelon

EOS: There were some bottom-fishing orders when it went down today, and it rebounded back to the 30-minute consolidation center. In the later period, it is likely to continue the 30-minute consolidation trend. The consolidation range is 7.6-8.1 US dollars. Short-term traders can flexibly do T with small positions in this range. Those who have no positions are not recommended to chase the rise, because the good news of EOS is about to be realized. There is a saying in the trading market: the realization of good news is bad news. Short-term support level: 7.4 US dollars, resistance level: 8.1 US dollars.

ETH: Yesterday, the hero judged that Ethereum has the need to test the support of $260. Today, it just hit the support level. The rebound strength after the decline is average. It is necessary to wait and see in the near future. The short-term trend will remain in the range of $260-270.

ADA: Today's downward correction is large, and the rebound is weak. There is a high probability that the market will remain weak and volatile in the future. For now, we will wait and see. If there is an opportunity for a big rebound in the future, we will consider covering our positions. The short-term support level is US$0.082 and the resistance level is US$0.09.

BCH: After the decline, the rebound is very strong. It is not enough to form a new upward trend before it stabilizes at $450. Next, we will still focus on the $450 mentioned yesterday. If it can effectively stand above it, we will talk about it. In the short term, it will remain in the range of $420-450, and the spot has certain short-term operation benefits.

LTC: My suggestion to Mr. Lite is to wait and see in the near term, and wait for the pattern after the later adjustment before making a choice. Today's correction is close to 8%, and the rebound strength is average. It is likely to remain weak and volatile in the short term. The support level is US$100 and the resistance level is US$120.

XRP: From the graph, the daily line of Ripple has dug out a concave shape for 5 months, and is currently at the concave neckline position. Compared with the corresponding Ripple Bitcoin in February 2019, the price of Ripple has not even doubled so far, and it is currently in a stagflationary market. The hero believes that it is currently a bottleneck period, and news is needed to give the market confidence to effectively break through the current concave neckline of $0.5. If the market effectively breaks through $0.5 in the future, it will be the time for Ripple to explode, and it may then catch up.