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Technical Analysis of BTC/USD for May 5, 2020
Crypto Industry News:
The crypto market Paxful announced today the extension of its charity initiative in Africa, with the launch of Fund for Africa, which is to allocate donations in Bitcoin to purchase the necessary resources to fight the coronavirus pandemic.
As announced, the number of COVID-19 cases in Africa is increasing. The purpose of collecting funds is to purchase personal protective equipment, food and to provide people with so-called high risk of infection, food and handwashing stations.
Cryptocurrencies have so far been an obstacle when it comes to fundraising and charity activities during the coronavirus crisis. Humanitarian organizations will support the LAO campaign, such as Zam Zam Water, which provides access to clean water and builds schools in villages around the world.
The COVID-19 crisis has mobilized a cryptographic community around the world to join charity initiatives. It is worth mentioning here the initiative to raise money in cryptocurrencies for the Italian Red Cross, which tripled the initial goal of the campaign of about $ 10,000 in less than four weeks, which allowed them to build medical facilities to fight COVID-19 in this country.
Technical Market Outlook:
The BTC/USD pair has broken through the trend line resistance located around the level of $8,819 and is heading towards the next technical resistance at $9,123. Nevertheless, the key level of support is still seen at $8,357. Any violation of this level will deepen the correction towards the level of $7,934 which is a key short-term technical support for the price. Weak and negative momentum supports the short-term bearish outlook.
Weekly Pivot Points:
WR3 – $11,425
WR2 – $10,480
WR1 – $9,720
Weekly Pivot – $8,578
WS1 – $7,824
WS2 – $6,750
WS3 – $5,970
Trading Recommendations:
The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. 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 until the level of $10,791 is clearly violated.
The material has been provided by InstaForex Company – www.instaforex.com
