Cryptocurrency Analysis

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Bitcoin done with the third stage

Greetings cryptocurrency enthusiasts!

So the triumphant halving of Bitcoin came, which was anticipated for so long. But what changes have occurred and what to expect in the future?

Let's take it in order.

In the new story, three BTC halvings are known: November 28, 2012; On July 9, 2016, and May 11, 2020, each subsequent stage carried a complication of the production process of the new block, or rather, a decrease in remuneration to miners. The process has its own sacred meaning of emission, which was asked by the sensei of crypto enthusiasts, Satoshi Nakamoto. Halving focuses on itself with increased interest, and judging by the existing process of complication, Google Trends literally went off-scale from queries related to halving. Naturally, against this background, crypto enthusiasts became active, which in March-April began to prepare trading accounts on stock exchanges, where the influx of living funds from outside was recorded.

Before we move on to halving and its impact on the market in the future, it is worthwhile to analyze the preparation process in detail.

So, for more than a month the price was in the variable range of $ 6,500 / $ 7,500, which served as a kind of catalyst for trading forces, but the existing platform was a temporary phenomenon, and everyone knew about this. Since April 24, the process of preparing positions for the halving has begun, longs have grown and capital has flowed into BTC. Over 16 days, market participants managed to gain more than $ 3,000, reaching $ 10,079, and this is a kind of parity for bitcoin. Such accelerations due to expectations of halving led to the mass liquidation of long positions in the amount of $ 1.3 billion, which resulted in a sharp decrease in the BTC rate, the loss of May 10 more than 15% of the cost.

The triumphant moment of halving comes on May 11, and everything is already won back on the market, there is no speculation, and the enthusiasts that were bought by BTC at the level of $ 10,000 are at a loss.

However, everything is not so bad, Bitcoin has come a long way from nothing to public recognition, and it is worth a lot. If we go to the numbers and compare the BTC trading volumes from the last halving, we will see that during this period, the trading volume soared 50 times.

Summing up, no matter how bad the judgment about the first MTC cryptocurrency, it still remains in its place and balances both in the market and in the world. Current halving will not bring unprecedented heights of $ 100,000; $ 200,000 $ 500,000 PTS needs stabilization in the new digital world.



Current development and prospects

After a local collapse on May 10, the quotes entered the stabilization phase, with variable boundaries of $ 8,250 / $ 9,200. In fact, we were faced with another catalyst for trading forces, where it can be assumed that halving could theoretically push the BTC to a gradual increase in the future.

The growth goes towards the breakdown of parity of $ 10,000 and consolidation above this value, which is the main goal for most traders.

We specify everything in the trading recommendations.

A buy position should be considered after consolidating the price higher than $ 9,200, with the prospect of a move to the level of $ 10,000. Subsequently, we expect a new stabilization, where it is necessary to consolidate at a level above $ 10,500, which will confirm the intention of further growth.



The general background of the cryptocurrency market

Analyzing the total market capitalization, you can see the change in trading volumes relative to the previous halving, where for the current hour Total market is $ 245 billion.

If we consider the volume chart in general terms, we see that the level of $ 260–265 billion remains a variable ceiling. Subsequent resistance is in the region of $ 280–300 billion.



The cryptocurrency market emotion index (aka fear and euphoria) has recently grown significantly to level 41, which is considered a good signal for the growth of activity of market participants.



Indicator analysis
Analyzing a different sector of timeframes (TF), it can be seen that there is a buy signal relative to the main time periods, but it is worth considering the fact that price fluctuations are carried out in the side corridor and the indicators of technical instruments are variable in nature.







Performed by Gven Podolsky
Analytical expert
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