BTC with a bumpy start into the week
The No.1 crypto currency will have to deal with heavy sales after falling below the important USD 9000 limit. The aftershocks of the halving are making themselves felt as many miners sell their BTC’s to pay their costs. In addition, the focus is once again on the traditional markets.
Bitcoin-Chart in detail
At the time of writing, Bitcoin is priced at USD 8775. This value corresponds to a daily minus of about 3.71%. After the dip below the USD 9000 mark, investors’ hopes are now based on the support line at USD 8800. In the past, this has already presented itself as a reliable support line on several occasions. However, should the bears pulverize this line as well, the next supports will be at $8600 and $8400. From a bullish perspective, the coming resistances are at $9000 and $9400.
Miner as trigger for the dump?
After the halving and the associated rewards halving, the hash rate in the BTC network has dropped sharply. Overall, the hash rate has fallen by over 40% compared to the peak value in 2020. The current pressure to sell could ensure that miners throw even more BTC units onto the market in the future. Even now, only about 900 BTC’s are mined daily.
Tension is in the air
The aftershocks of the halving become more noticeable barely 2 weeks after the event. While the miners are coming under selling pressure, a new downtrend could hit a highly volatile market. In the past 14 days we have reported several times that the “digital gold” was able to cautiously isolate itself from the traditional markets. On Monday the Dow Jones Industrial and the S&P 500 will consolidate for the time being. However, experts continue to argue fiercely about whether the consequences of the coronavirus pandemic have been fully fed into the indices. With a total market capitalization of around USD 247 billion, there is a danger that crypto-space will become the plaything of traditional markets.
Golden Cross without effect?
After the bulls missed the magical USD 10,000 mark several times, the trading volume fell drastically as a result. In terms of charts, the development of a rare Golden Cross gave hope to the traders. A golden cross describes a formation where the 50-day line (MA 50) and the 200-day line (MA 200) cross in a certain constellation (the MA 50 comes from below in this case). In the past, such a chart situation often proved to be a bullish indicator. To date, however, this expectation has not been confirmed.
High dominance despite bear market
At the moment, the BTC Dominance Index is at 65.4 %. This means that the alternative assets are able to win back smaller market shares, but it is still a long way from a trend reversal. Ethereum (-1.58 %) is still holding above the important USD 200 mark (current price: USD 203), while Tether Ripple is bumping off the podium of the crypto charts.
14 days after halving, the Bitcoin faces a difficult task. The miners come under enormous pressure and many bullish indicators turn out to be ineffective.