The long-awaited Bitcoin Halving is here, but be careful on the market
In an hour and a few minutes, BTC will officially have the third ’Halving’ behind it, which will again reduces rewards. This means that production will be much more difficult, but this can lead to an increase in price because supply will be limited.
But let’s take a look at how traders behave and what we can expect in the coming days and maybe months.
Since the last article in the trading category called “Bitcoin wants to touch $ 10,000 before the Halving“, exactly what we wrote about has happened. Bitcoin has taken 3 days to overcome $ 10,000 since our article was published, and has managed to overcome two resistances.
For a while, it seemed that BTC was trying to create support at a price of $ 10,000, but the bears wanted to sell, in bulk. The bulls was only a few hours around the magical frontier, and on May 10, came very strong sales. Sales and their volume (binance) were similarly large as on March 13 when there was a big drop through COVID-19. At this point, the bears gained a better position and surpassed all the bullish buying volume of the last month.
Obviously, many traders who had bought at bargain prices caused by COVID-19 waited to touched by $ 10,000 and took profits from there.
What does technical analysis tell us?
- BTC bounced back from our rendered 1st support at $ 8,400, and was subsequently rejected by the 1st resistance at $ 9000-9150.
- This is clear evidence of how it all works nicely if the market is not disrupted by external influences and information.
- Bitcoin is still in a period of consolidation, but we can expect a strong fight, because it is very important for the bulls not to lose this level.
- If BTC doesn’t keep support at $ 8,400, we may look at support 2. in the $ 7,500 area.
- Overall, however, we are in the medium to long term to tune for growth, and this is also supported by the surrounding events and the response to the BTC itself and the increasing interest.
- Open Longs between 8400$ – 8180$, SL 8050$
- Open Shorts between 9000$ – 9220$ SL 9350, next round in area 9500$