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Bitcoin price is rising today. BTC has gained almost 8% to set a daily high of $9,660 but the price is still not adequate for small BTC miners.
Bitcoin (BTC) price awakened on May 14. The price is close to $9,700. Earlier, the price had surged to nearly $9,400 before it pulled back to consolidate within the $9,300 zone. The strong upward trend has pushed BTC above the $8,800-$8,930 resistance zone. But what will happen next is unclear for Bitcoin miners.
Since the May 11 halving correction plunged the price of the flagship token to $8,122; it has now recovered considerably. Currently, it appears like many traders are now looking at $9,200 to serve as strong support. It seems like Bitcoin is gradually working its way up toward the $10,000 level. In such a scenario, the $9,300 to $9,400 level might become a sticking point. You can read more about the price movements following this link.
Traders expect the price action to provoke a retest of previous $9,200 and $9,061 resistance levels where the 78.6% Fibonacci Retracement is perched.
Bitcoin Technical Review
The hourly chart seems to be forming a bull flag as the flagpole got established on a significantly huge volume increase. Moreover, the current price consolidation is accompanied by a continuously decreasing trading volume. That means the number of HODLERS might be increasing.
In the coming hours, the Bitcoin price seems like it will continue to consolidate above the $9,260-$9,334 zones. That zone hosts a VPVR high volume node, and it also coincides with the base of the bull flag. The descending trendline that originated from the May 7 high of $10,070 is still intact overhead. Twice during the May 14 trading session, the price met significant resistance at that trendline.
The current rally has pushed the price above the ascending channel, and so far, bitcoin has found support along the top of this channel. Any form of plunge below $9,300 places BTC price back into the channel. Such a move may increase the probability of the price plummeting to the 20-MA at $9,180.
If the bitcoin bulls can push the price sustainably above the $9,400-$9,500 zones, traders will target $9,750 as their next resistance.
Investor Confidence Improving
Previous reports revealed that Bitcoin recovered rapidly from the lows of $8,122 at the start of this week gaining almost 15% so far. That steep recovery was accompanied by a rapid plunge in the crypto’s implied volatility.
In-depth analysis indicates that a surge in implied volatility levels means that the options market premiums also surged. This means that the crypto market might be charging higher for insurance. But, it may go both ways for calls (bullish) and puts (bearish) options.
Now that the Bitcoin halving event is out of the way, the whipsaw volatility experienced on March 11 may cease. But, a steep drop to recent lows should not also be ruled out.
In case of a drop below $9,000, support as formed at the $8,900-$8,700 zones. If this zone is also broken, the price my plunge below the ascending trendline. Then, it may retest the $8,300 to $8,100 lows of March 9-11. In the near term, traders should consider trading volumes since increased sell volume may push BTC price back to the $9,200-$9,150 level.
On the flip side, increased buying power and volume may signal an imminent surge. That surge may push the price towards the $9,750 level.
Future Is Unclear for Bitcoin Miners
Although Bitcoin has gained over 14% after the halving, the current value may not be adequate to support the small and less-efficient miners. This scenario may shift market dynamics. At the moment, Bitcoin is up over 6% in the past 24 hours, hovering around $9,500. The crypto is trading above its 10-day and 50-day moving averages.
Many of the technical indicators are bullish, and a steady uptrend has formed since early trading of May 13. The much-anticipated halving event was a bit uneventful, and market uncertainty still dominates the crypto mining world. Since the halving, the business of running machines to secure networks became 50% less profitable.
Some of the miners may be in trouble, with the prices still not rising as expected. The mining revenue fees gained from 4.6% before the halving to 7% on May 13, according to Glassnode data provider.
After the Bitcoin halving, rewards per block were cut from 12.5 new bitcoins to 6.25 BTC. That has becomes the challenge for the BTC mining industry that gets most of its income from the block rewards. But, it is beneficial for everyone else since the BTC network’s energy consumption might drop in the coming months.