Bitcoin (BTCUSD) (BTC-USD)

After an all time high established on November 10 at $69,000, Bitcoin has since made a correction and is currently trading at $57,000. Its movement is leading it to a strong support around $52,000, materialized by the high established on September 7, the trend line connecting the lows of July 20 and September 21, and the 23% Fibonacci retracement. If Bitcoin breaks this strong support and continues its downward movement, its next target will be the support line of the bullish channel it is currently trading in. This area is around $45,000, corresponds to the 38% Fibonacci retracement, and could be a very interesting rebound area, for bullish traders.

ALWAYS HIGHER

The cryptocurrency market surpassed $3 trillion on Monday, with 40% of the market for king bitcoin and just under 20% for Ethereum . Presumably attracted by the extraordinary gains the market allows, and at the same time worried about inflation in Europe and North America, investors are getting on board more and more. Some are buying crypto-currencies, others are investing in start-ups, participating, for example, in IDO's. A real ecosystem is being created.

Financial bubble or real transfer of wealth? It's hard to say, but it's certain that there is a great deal of speculation in everything that is being created. In the early 2000s, the Internet had its own, and we all remember the subprime crisis of 2008.

Nevertheless, through Bitcoin, crypto-currencies have shown (for the biggest projects at least), that they are able to resist censorship (China will be able to testify to this), that transfers are now quasi-instantaneous, and that consensus algorithms allow for a security that has nothing to envy to that of banks. Some analysts predict that by 2025, DeFi will have multiplied its value by 100.

A DECISION WITH SERIOUS CONSEQUENCES?

On May 22, China concluded its series of anti-cryptocurrency announcements with a total ban on Bitcoin mining on its territory (for the sixth time in eight years).

As expected, the announcement was a bombshell and the price of a Bitcoin dropped by 15%. At first glance, this news was greeted by Bitcoin's detractors as a death sentence, but more importantly, it allowed for a decentralization of the Bitcoin mining network, which was once dangerously centralized in China (as of April 2020, it accounted for about 65% of the Bitcoin hashrate, compared to 7.2% for the US and 0.82% for Canada).

The hashrate is a component of the consensus proof of work. Basically, it is the number of attempts made per second to solve the cryptographic problem necessary to validate a new block. The faster you are, the more transactions you can validate, and thus mine Bitcoin.

5 months later, the United States is now in 1st place, with 35.6% of the hashrate, Canada has also become a mining superpower and now has 9.55% of the hashrate, in 4th place. This situation is suddenly starting to worry China. A statement was indeed published by the National Development and Reform Commission (NDRC), questioning Chinese entrepreneurs on the relevance of continuing the ban on crypto mining.

Bitcoin has recovered very well from this situation and its price is trading around $63,000.