Technical Analysis of BTC/USD for May 13, 2020:

Crypto Industry News:

Riot Blockchain, an American mining company, more than doubled the number of new generation Bitcoin miners they purchased, buying 1040 S19 Antminers from Bitmain.

Additional miners cost the company $ 1.9 million after Riot bought 1000 S19s Pro. Anticipating units to be shipped and deployed in the third quarter of this year, Riot expects the upcoming 2040 S19 units to increase the company's operational hashrate by 80% by 2021. In total, Riot predicts that it will manage a hashrate of 457 petahash per second, consuming approximately 16.5 megawatts of electricity. A spokesperson for Bitmain in North America said the company "has been working with Riot Blockchain for several years," as Riot "uses Antminer [Bitmain] products to operate its data centers."

The purchase of Riot occurred on the same day that the manufacturer ASIC admitted that it has problems with the recently sent lot S17 - miners report failures of up to 30% of units. The company is currently negotiating solutions with customers who have purchased faulty devices, encouraging affected users to contact them directly.

Technical Market Outlook:

The BTC/USD volatility has decreased after the pair has dipped 15% just before the halving. Still the key level of support is still seen at $7,943, but the nearest technical support is currently seen at the level of $8,464. Any violation of this level will deepen the correction towards the level of $7,934 which is a key short-term technical support for bulls. Weak and negative momentum supports the short-term bearish outlook about 13 hours before halving.

Weekly Pivot Points:

WR3 - $11,485

WR2 - $10,709

WR1 - $9,512

Weekly Pivot - $8,760

WS1 - $7,652

WS2 - $6,835

WS3 - $5,708

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 -