BTCUSD – Weekly outlook for Bitcoin Price – 5th May 2022

Introduction

The online brokers and other companies have reacted to the statement made by congressman Jared Huffman describing Bitcoin mining as “poisoning our communities“ and polluting the air and water. 

Companies like Core Scientific, Agro Blockchain, Galaxy digital Bitgo, and others signed against the misperception about bitcoin and digital assets mining presented by Huffman.

BTCUSD Technical Analysis

Monthly Chart Bullish 

Monthly (MN) Resistance: 59099, 48200, 47700

Monthly (MN) Support: 28805, 37155.

A renowned crypto investor Paul Tudor Jones, says that the crypto assets are attracting the brightest minds as the quality of talent flocking into the space are increasing as more college students are moving in and you won’t want to miss the intellectual capital.

The bears closed April in their favor and engulfed the March candlestick. If the law of engulfing is to be followed, we expect the price of BTC/USD to still drop lower during the trading weeks.

The bears will likely push the price down into the support area of 35500 if the bulls cannot reject the price from the 36000 level. The early bullish rise is a retest of the 47700 zones and a breakout above may see the price rise higher.

Weekly Chart

Weekly Resistance Levels: 48000, 52000.

Weekly Support Levels:  29300, 39600

 The weekly chart shows that the online brokers who are shorting the BTCUSD pair are faced with another indecision as the previous week closed with a small bearish candlestick on the weekly timeframe. 

The BTCUSD pair could face another week of indecision if the market sentiment is not clearly defined. Crypto investors and retail traders who don’t have the financial power will need to stay out of the market until a structure is put in place for them to the market sentiment.

Daily Chart

Daily Resistance 52100, 48120

Daily Support 34000, 38000, 36000.

The  BTC/USD pair had about a 22% drop from the high of 48120 into the support level of 38000. As the trading week began for the new month,  a break out of the support level will push the price of the BTC/USD pair below the 36000 zone if the bear’s momentum increases. The price is in a psychological zone as the direction of the market is not certain around the zone.

Some analysts believe that if the geopolitical risks improve and the Fed’s decision to tighten the policy is not aggressive, then inflation will take care of itself.

H4 Chart

4 Hour Resistance 48128, 43520.

4Hour Support  39141, 41971, 38000.

The bears are not relenting as they keep pushing the price of bitcoin down with strong candles indicating that the market direction is still bearish.

A close below the 37400 level will push the price lower for the downtrend structure to continue. The trend remains bearish as the price kept pushing down creating lower lows and lower highs in the H4 time frame.

Bullish Scenario:

There’s a high selling pressure that the bulls need to surmount in order to resume their dominance, most importantly a bullish price close above the 42976 resistance on the weekly time frame. If the H4 resistance trend line is broken the price of bitcoin can move up.

Bearish Scenario

On the MN-monthly chart, the market has been bearish and it may continue to go lower if we see a monthly price close below the 37155 support area by month end as the bears threaten the significant support level (37155).

Bitcoin BTC News Events 

WARNING FROM MAJOR CRYPTO AND BITCOIN COMPANIES ON THE  RISK IN THE PROOF OF STAKE SYSTEM.

The warning comes from the major bitcoin and crypto companies in the USA about the risk involved in (PoS) Proof-of-Stake as they write to the US Environmental Protection Agency debunking Huffman’s letter with other companies.

The two biggest assets in the cryptocurrencies Bitcoin and Ethereum use Proof-of-Work (PoW) while Ethereum is planning to switch to PoS. 

Huffman argued that “ less energy-intensive cryptocurrency mining technology like PoS is available and can achieve lower energy demands at 99.99% than PoW to validate transactions.

Other major players in the BTC and Crypto industry believe that the PoS is unsuited as an alternative to the BTC energy PoW mining process because it accumulates too much power over the network in fewer hands. 

That is why crypto holders and owners opt to store their coins with large custodians which leads to the centralization and risk in the PoS system. They wrote that ”since bitcoin was founded specifically to disempower intermediaries, it must remain on proof of work”(PoW).

BTCUSD Conclusion and Projection

The major bitcoin and cryptocurrency brokers and other institutions do not support the PoS system because it does not provide a way to achieve decentralization and distribution of digital assets as PoW does.

If the BTCUSD pair can close lower than the 36000 mark, the crypto asset will drop lower as the trading weeks continues. However, if the support zone is not breached, the BTC/USD will find its way up for the online brokers to go long.

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