- Bitcoin has resumed the downside and touched $4,090 in Asia.
- Chinese mining pools are taking their ASICs down to stop losses.
Bitcoin sell-off has resumed as the price touched the area below $4,100 handle for the first time since November 20. BTC/USD is currently trading at $4,200, though the upside momentum remains weak as long as the coin stays below $4,400 (SMA50, 1-hour).
Bitcoin’s technical picture
From the short-term perspective, a sustainable move above $4,400 will open up the way to $4,600-$4,640 congestion zone, strengthened by Bolinger Band 1H upper and the previous day high. This area stopped the upside on previous recovery attempts.
On the downside, the support is created by $4,100-$4,090 zone that encompasses intraday low and separates us from the recent low $4,050. Once below, the sell-off may be extended to $4,000.
Chinese miners are out of business
Chinese miners drop out of business as it is no longer profitable to mine cryptocurrency. According to the co-founder of F2Pool, one of the Chinese mining pools, the recent price collapse forced companies to switch thousands of miners off to stop losses.
“Tens of thousands of #bitcoin miners were shut down due to the recent market crash, according to the co-founder of F2Pool, one of the largest/oldest mining pools in China,” he replied in the tweet to cnLedger.
BTC/USD, 1-hour chart