Bitcoin Halving Season

<h3>BTCUSD, Daily</h3>
<p>BTCUSD is trading strongly and is currently trying to stay above the $9,000 level last recorded on March 6. Sentiment on the cryptocurrency market has been positive following the halving activity of May 2020. This Halving activity is the breakdown of block mining rewards in half and it makes the cost of mining activity more expensive than ever before. This activity tends to lead to a decline in supply and is directly proportional to an increase in demand, which would theoretically lead to higher prices.</p>
<p>Historically, BTCUSD prices rise 6 months before the halving activity begins and reach its highest price within 1 year after the halving activities. In November 2012, BTC prices rose to $12 and BTC jumped to $994 a year later. A similar phenomenon was recorded at the halving activity in July 2016 where prices were at around $650 and jumped to nearly $3,000 a year later. The highest price ever recorded by BTC was $19,470 in December 2017.</p>
<h3>Technical Analysis</h3>
<p>BTCUSD has seen a nearly 300% increase since reaching its lowest price in 2020 at $3,762.50 after the ‘Black Friday’ event on March 13, 2020. It is currently trading at around $9,030.</p>
<p>This area is an important ‘confluence’ area located at the 78.6% Fibonacci retracement of the highest price of 2020 to the lowest price. It is also located close to the downtrend channel as shown in the chart. Both of these resistant confluences were tested on April 30 and BTCUSD prices failed to close higher. If this resistance level is breached, the next resistance is at <strong>$9,702</strong> (88.1% fibo retracement) with the 2020 high at<strong> $10,504.50</strong>. The  BTCUSD price is supported by the 200-daily moving average of <strong>$8,500</strong>. The nearest support level below here is at <strong>$7,929</strong> which is also the 61.8 fibo followed by $7,133.50 (50% fibo).</p>
<p>The bullish momentum is strong today as the MACD indicator shows that the signal line has passed the 0 level and remains below the MACD histogram.</p>
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<p><strong>Tunku Ishak Al-Irsyad</strong></p>
<p><strong>Market Analyst </strong></p>
<p><strong>HF Educational Office – Malaysia</strong></p>
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