Bitcoin price continues higher for the second day in a row after the bitcoin halving event. On Monday, occurred the third halving event for bitcoin which means that the reward for mining each bitcoin block on the Bitcoin network has reduced by half from 12.5 to 6.25, for the third time in history.
Traders will focus today on Federal Reserve Chairman Jerome Powell speech amid rising speculation that the Fed might soon adopt negative rates. In a message to twitter President, Donald Trump’s reiterated his call for negative interest rates. “As long as other countries are receiving the benefits of Negative Interest Rates, the USA should also accept the “GIFT”. Big numbers!,”
Many analysts believe that a negative interest rates environment will be bitcoin positive as BTCUSD might act as a safe haven instrument just like gold. Bitcoin and gold have limited supply and act well as a hedge to inflation and negative interest rates.
Bitcoin Price Support and Resistance After Halving
Bitcoin price is 1.86% higher at $8,986 recovering some of the pre-halving losses and approaching the critical $9,000 mark. As we have already discussed in our previous analysis “Is Bitcoin Price Bullish After Halving?” the technical picture remains bullish for bitcoin as long as the crypto pair trades above the 200-day moving average, while a close above 9,000 might be the start of another leg higher targeting the previous week top at 10,000.
On the upside, initial resistance stands at $9,017 the daily top. The next resistance for bitcoin will be met at $9,086, the 78.6% Fibonacci retracement. In case of a break higher, then the bulls will be looking for an extension above 9,526 the high from May 10.
On the other hand, initial support for BTCUSD stands at 8,804 the daily low. The next important level to watch in case of further selling pressure is at 8,554 the low from yesterday’s trading session. Bears will be back in control below the 200-day moving average at $8,040.