Bitcoin Price Analysis: BTC At A Standstill As Markets Wait For Pivotal Fundamental Event
- Bitcoin saw a 1.6% price increase as the coin reaches the $8,850 level.
- The Bitcoin Block Halving Event Is Expected Today.
Today will mark an important day in the industry as we will see the 3rd Bitcoin Block Halving event. This will see the mining subsidy being slashed in half from 12.5 BTC per block to just 6.25 BTC per block.
As you can imagine, this reduction of mining rewards will put pressure on miners and lots of the small scale operations are likely to close down as their cost of production is set to increase beyond the price that they can sell BTC at.
Ahead of the halving, Bitcoin dropped by 10% over the weekend which caused the price for the coin to drop from the $9,600 level to reach as low as $8,100. It quickly recovered to close above $8,600. BTC saw a further price increase of around 1.6% today as the cryptocurrency reaches the $8,850 level.
The transactions in the meme pool have totally disappeared as nobody seems to be sending any BTC transactions at this time. The majority of traders are likely to be waiting until the halving event to see how the market reacts before sending transactions from their personal wallets to the exchanges.
Bitcoin Price Analysis
BTC/USD – Daily CHART – SHORT TERM
Market Overview
Taking a look at the daily chart above, we can see how BTC managed to close above the $8,600 support yesterday. Today, it increased by a total of 1.6% to reach $8,860. It had surged higher earlier in the day which allowed the coin to break above $9,000, however, the sellers stepped in and pushed the market lower.
Short term prediction: BULLISH
BTC remains bullish and would have to close beneath $8,600 to turn neutral. It would have to drop beneath $7,600 before turning bearish again.
If the sellers do push BTC lower, the first level of support lies at $8,600. Beneath this, support is located at $8,400, $8,000 (100-day EMA), and $7,690 (.382 Fib Retracement).
On the other side, if the bulls push higher, the first level of resistance lies at $9,090 (bearish .786 Fib Retracement). Above this, resistance lies at $9,200, $9,600, $9,600, $9,750 (bearish .886 Fib Retracement), and $10,000.
Key Levels
Support: $8,600, $8,500, $8,200, $8,000, $7,690, $7,500.
Resistance: $9,000, $9,200, $9,600, $9,800, $10,000.
The Bitcoin Block Halving Event Is Expected Today.
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.
Published at Mon, 11 May 2020 16:57:39 +0000
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