Crypto Industry News:
By reducing the block reward by half, the only good information for Bitcoin miners is transaction fees. At the moment, they allow to minimize their losses due to recent halving, as a result of which the revenues of miners fell by over 60%.
On May 10, miners earned 2,188 BTC, on May 12 this figure dropped to 852 BTC, or 61%. Halving forced some miners to leave the chain, which led to a reduction in the network's hashrate rate. This, in turn, led to an increase in the block interval, which means that fewer of them were processed per unit time, thus reducing the number of block rewards available to miners.
What has happened so far can be called the "mini spiral of death" scenario. The only good news for miners is that network congestion has led to a sharp increase in transaction fees, i.e. from $ 0.62 at the end of April to $ 5.21 on May 15. Currently, as a result of this dynamic situation, transaction fees amount to 17% of miners' revenues. This is the highest percentage since January 2018.
Miners' revenues denominated in USD fell from $ 19.25 million on May 9, to $ 7.82 million on May 12. This is a decrease of 62%. The next correction in mining difficulty will occur in three days. However, current calculations predict growth because hashrate went up significantly before halving. However, before this happens, we will probably see a slight decrease in difficulty, which should help other miners.
It is possible that as Bitcoin matures and each subsequent halving, there will eventually be no more new Bitcoins, so miners will have to rely more on transaction fees. However, the higher they are, the less attractive the network will be for users.
It should be remembered, however, that many mining industry experts believe that the hashrate decline is upward for Bitcoins, as it will increase the profitability of other miners.
Technical Market Outlook:
The BTC/USD pair has been hovering around the level of $10,000, which is the key short-term technical resistance for the bulls. The recent local high was made at the level of $9,888, so any violation of this level will lead to the local up trend extension towards the level of $10,227 - $10,430. The nearest technical support is seen at the level of $9,382. Please notice, the market conditions on daily time frame chart are extremely overbought.
Weekly Pivot Points:
WR3 - $12,194
WR2 - $10,994
WR1 - $10,553
Weekly Pivot - $9,337
WS1 - $8,765
WS2 - $7,555
WS3 - 7,013
Trading Recommendations:
The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated.
