By Dmitriy Gurkovskiy, author at RoboForex Blog
On Tuesday, May 12th, the BTC rate remains volatile but investors are ready to buy. The cryptocurrency is generally trading at 9000.00 USD.
As for the BTC dynamics on D1, during the last week, the quotations of the leading cryptocurrency reached the psychologically important level of 10000.00 USD and tested the mid-term resistance level of the descending channel. Then the market needed a correction, and the quotations fell to the local support line, trying to test 8000.00 USD. At the same time, with the MACD lines heading upwards, we may suppose that the market will perform a bounce and growth to the local fractal high of 10505.60 USD. However, we may not exclude a breakaway of 8000.00 USD.
On H4, the Stochastic had formed a divergence, signaling a change of the trend, before the quotations started declining to the support line. The quotations are testing the support line tightly; it might be aiming at a breakaway of 50.0% Fibo (8000.00 USD), which will let them decline further to 23.6% (6400.00 USD). Currently, pay attention to the Stochastic lines in the oversold area. Their position, along with the bounces off the support line, is probably indicating new momentum to 10505.60 USD.
The most important information for the BTYC is the halving that happened in the network. The miners’ reward per mined block has become two times smaller. This is the third halving in BTC history and the main intrigue is how the rate of the leading cryptocurrency will behave. By now, the BTC price has not much changed at the moment.
Meanwhile, the trade volume declined by about 9% during the last 24 hours. The market share of the BTC remains at the level of 67%.
In terms of profitability, the BTC still dominates over gold and the US exchange indices. Since the beginning of the year, the BTC has grown by 38%, while the US national debt (i.e. 20-years national bonds) has grown by 21.1%. The head of Fundstrat Thomas Lee points at the fact that gold during the same period has grown by only 12.5%.
It might not be absolutely correct to compare the assets with a principally different approach to profit forming; however, Lee does so to form a brighter and filler picture for investors. On the market, they know too well that gold is an investment for the patient, while cryptocurrencies are propped by the exchange trust and the moods of market participants. However, none of these factors prevent you from forming a profitable portfolio.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
The post Bitcoin Price Analysis for May, 12th – BTC Volatility Sweeping Off Scale appeared first on The Merkle News.
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