Bitcoin Analysis for 08.08.2018

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Bitmain, one of the largest companies involved in the production of equipment for extracting and mining Bitcoins, officially opens a point in Texas and expects to start mining early next year.

The company confirmed that it will invest USD 500 million over the next seven years in the new Blockchain data center in the United States as part of strategic investment plans and expansion in North America. The plant will employ 400 inhabitants, and Bitmain will also carry out educational and training programs for potential employees.

According to the financial press rumors, Bitmain will open the plant for the first time appeared last month when the local newspaper reported that the company took over the former aluminum smelting plant. Public officials then said they could not talk about this project. The newspaper described a new Bitcoin mining operation as "the worst kept secret in the Rockdale area."

The Chinese mining company, valued at around 12 billion dollars, has already published preliminary job offers on the indeed.com website.

Bitmain's activity at Texas joins the planned facility in Washington state. In April last year, Bitmain received permission to lease the land to start a mining operation in this state, although it met with a sharp reaction from some local residents, skeptical about extracting cryptocurrencies.

In addition to expanding its operations in the US, Bitmain also plans to open offices in Brazil. It already has the creation of many international bases in which it will carry out Bitcoin extraction operations, including in Switzerland and Israel.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The main impulsive scenario was invalidated as the wave 4 has entered the territory of the potential wave 1 at the level of $6,768. This level was broken and now the price is trading around the level of $6,433 and the next target for bears is seen at the level of $6,317 which is the weekly pivot support. The strong momentum indicates that the overall downside target is at the level of $5,755.

Bitcoin Analysis for 08.08.2018