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Technical Analysis of BTC/USD for May 1, 2020
Crypto Industry News:
The top venture capital company Andreessen Horowitz creates a second cryptographic asset fund with a total value of USD 515 million, exceeding the initial plan by USD 65 million. As with the first cryptography-oriented a16z fund that raised $ 300 million in 2018, this new venture will reportedly focus on blockchain projects.
The developers expect many new blockchain chains to appear in 2020. This will also apply to Dfinity, a cloud-based project based on this technology, which a16z has already supported through its first cryptographic fund.
As one of the first venture capital companies to enter this area, Andreessen Horowitz has so far invested in various cryptographic projects, including Libra, Maker DAO (MKR) and Coinbase, among others. The company’s involvement in the crypto industry is not just limited to investment. In December 2019, a16z announced the creation of a free seven-week cryptography launch school that was expected to start in February 2020. However, there are no updates so far.
Technical Market Outlook:
The BTC/USD has made a trend reversal pattern at the top of rally in form of Shooting Star candlestick pattern. Before the pattern emerged, the bulls have managed to hit the level of $9,381 and then the bearish pressure occurred. The rate dropped to the level of $8,357 and bounced slightly towards $8,700. The nearest support for Bitcoin is seen at the level of $7,934. The market conditions are extremely overbought, so odds for a deeper corrective wave are still high.
Weekly Pivot Points:
WR3 – $9,046
WR2 – $8,348
WR1 – $8,040
Weekly Pivot – $7,352
WS1 – $7,064
WS2 – $6,356
WS3 – $6,047
Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in Bitcoin and treat BTC as a digital gold. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.
The material has been provided by InstaForex Company – www.instaforex.com
