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Technical Analysis of BTC/USD for May 6, 2020
Crypto Industry News:
Most Chinese miners expect a huge influx of new Bitcoin buyers over the next six months. According to a survey conducted on 4 May by a cryptographic services company, 57% of Chinese miners expect a large number of new Bitcoin buyers to join the market in the near future. Over 71% of respondents also believe that the market has regained confidence in Bitcoin. In addition, 45% of respondents believe that the price of Bitcoin will be between $ 10,000 and $ 12,000 in the next six months, almost 24% believe that it will remain around $ 10,000 with low volatility, while over 14% believe that cryptocurrency will be worth over $ 15,000 .
Most respondents also believe that Bitcoin hashrate will not change significantly after the upcoming halving and expects it to be between 110 and 130 EH / s per day.
This seems to coincide with the expectations of crypto community members. As one of the foreign industry portals recently reported, 37% of the cryptocurrency community expects the hashrate to be higher a month after halving, compared to the current level.
Respondents also expect the US economy to affect Bitcoin in the future. As many as 64% of them expect that federal support will have a “moderately positive” impact on Bitcoin. Only 12% of respondents believe that these measures will have a very positive impact, and another 12% believe that this will not affect cryptocurrency.
Technical Market Outlook:
The volatility of Bitcoin has decreased since the beginning of the new week. 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
