18.04.202111:43 Forex Analysis & Reviews: Problems with the supply of electricity in China have brought down bitcoin and the entire cryptocurrency market

On Saturday, the world's first cryptocurrency showed signs of wanting to start a correction. And on Sunday, it fell by $ 10,000, having immediately worked out the second support from those that we gave - $ 52,300 per coin. Some experts immediately said that the panic in the cryptocurrency market was due to the fall in the hashrate of the leading mining pools, which decreased due to several floods and accidents at coal mines in China. It is reported that the hashrate (bitcoin mining speed) has fallen by 40%. At the same time, this 40% drop was triggered by power outages in just one province of China. Also, along with bitcoin, the quotes of all other cryptocurrencies collapsed. However, it is still unclear whether what happened is just an accident, or whether this is the beginning of a protracted correction or a global decline in "digital gold"? To understand this, you need to understand what happened in China. There were problems with electricity due to accidents, thus, a drop in hashrate, but what does this have to do with the exchanges? After all, bitcoin fell in price because market participants began to sell it, and not because the hashrate fell or because of accidents at coal mines. Thus, traders could witness today how stable the current cryptocurrency market is. By and large, nothing terrible happened. Bitcoin will be mining slower than usual for a while, that's all. But this led to a collapse of quotes by $ 10,000, which means that many bitcoin owners simply lost their nerves. By the way, the accidents in China are a good explanation for what is happening for those who are interested in maintaining the "bullish" trend. After all, now the main thing is to prevent a panic in the market. Of course, now the most famous crypto experts are trumpeting that the "bullish" trend persists and this time is a great time to buy bitcoin on the cheap. However, from our point of view, bitcoin has all the chances of a collapse right now. First, many exchanges and stock markets will not open until tomorrow. So tomorrow will be the key day. If institutional investors support the sale of the "cue ball", then it can go to the figure of $ 40,000 per coin, or even lower. Secondly, we have repeatedly written in recent days that the bullish trend is weakening. This can be seen in any long-term illustration, even with the naked eye. Bitcoin is already extremely overbought, and the influx of new investors is drying up. Everyone who wanted to has already bought bitcoin. Therefore, from our point of view, the fall was in any case brewing. And the electric crisis in one of the provinces of China is just a push.

In technical terms, the main thing happened – the quotes went beyond the ascending channel. However, this can be stated with confidence only tomorrow, if today closes below the channel. Even though bitcoin went below the channel at $ 8,500, this does not mean that it will close today also below this level. However, if the consolidation takes place, the strongest signal for a strong correction will be received. It will also be important where the day ends relative to the three support lines. If, for example, the quotes are below $ 52,300, then the chances of moving to $ 44,600 will increase many times.