Technical Analysis of BTC/USD for May 18, 2021

Crypto Industry News:

Michael Novogratz's Galaxy Digital company published on Friday a report entitled "On Bitcoin's Energy Consumption: A Quantitative Approach to a Subjective Question", providing access to its open source calculation methodology.

A study by the Galaxy mining arm estimates that the annual electricity consumption of the Bitcoin network is 113.89 TWh, including the energy consumption of miners, the energy consumption of the pool, and the energy consumption of the nodes. According to Galaxy estimates, this is at least two times lower than the total energy consumed by the banking system and the gold sector on an annual basis.

Galaxy Digital Mining claims that while Bitcoin's energy consumption is transparent and easy to track in real-time with tools like the Cambridge Bitcoin Electricity Consumption Index, assessing energy use in the gold industry and traditional financial system is not that simple.

"The banking sector does not report electricity consumption data directly," the report reads. Moreover, the retail and commercial banking system requires multiple settlement layers, while Bitcoin offers clear final settlement. Based on Galaxy's estimates of the energy consumption of banking data centers, bank branches, ATMs and card network data centers, the total annual energy consumption of the banking system worldwide is estimated at 263.72 TWh.

Technical Market Outlook:

The BTC/USD pair has made another wave down to the level of $42,082 and bounced off the lows towards the immediate technical resistance is seen at the level of $45,710, $46,371 and $47,077. Please notice, the market still trades under the trend line resistance. The zone located between the levels of $43,097 - $41,794 is the key short-term demand zone and any violation of this zone will lead to another wave down towards the level of $40,942 and $39,969. The market is in full control of bears and only a strong breakout above the level of $47,077 would temporary change the outlook to bullish (but still corrective in nature).

Weekly Pivot Points:

WR3 - $67,286

WR2 - $62,987

WR1 - $51,788

Weekly Pivot - $47,852

WS1 - $35,984

WS2 - $32,386

WS3 - $20,567

Trading Recommendations:

Event despite the recent correction the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $50,000 is clearly broken on the daily time frame chart (daily candle close below $50k).

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The material has been provided by InstaForex Company - www.instaforex.com

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