Bitcoin had a relatively uneventful Tuesday as the price maintained quasi-stability in the range between $8,750 and $9,000. It is possible that the BTC price has completed a W-X-Y correction and is following a descending resistance line while facing resistance from the 100-hour MA.
Meanwhile, a growing number of Bitcoin miners seem to be getting priced out since the halving on May 11 that slashed block rewards by half. As a result, on Tuesday, the hash rate of the network dropped to its lowest since the beginning of 2020.
More on these and other big stories in BeInCrypto’s Cryptocurrency News Roundup for May 26, 2020.
Bitcoin Price Analysis
The price is still following the aforementioned ascending support line and is trading near the horizontal $8,550 support level. Unless the price breaks down from this level, the possibility that this is an impulsive five-wave formation is still there.
- The Bitcoin price is following an ascending support line.
- There is support between $8,550-$8,700.
- As long as the price stays above the $8,500 horizontal support level and the ascending support line, the possibility of a bullish wave count remains valid.
ALGO and RSR: 2 Altcoins That Could Soon Break Out
BeInCrypto’s technical analyst Valdrin took a look at Algorland (ALGO) and Reserve Rights Token (RSR) — both relatively lesser-known tokens with a loyal community of investors — and posited that they could both be due for a breakout soon.
The ALGO price has reclaimed a long-term support level and created a double-bottom combined with bullish divergence. For RSR, if the price manages to break out, the next closest resistance area is found at 50 satoshis.
Bitcoin’s Plunging Hash Rate Can Be Damaging for Some Futures Traders
The recent drop in Bitcoin’s hash rate was expected given that most older mining rigs were supposed to be virtually knocked out of the game following the milestone event.
This is, in a way, the natural order within the Bitcoin ecosystem. While the plunging hash rate is not necessarily an alarming phenomenon in the current context, it may eventually end up harming some traders — especially now that recently some exchanges have even been rolling out futures markets based on the hash rate.
Cryptocurrency Price Analysis: REN and Matic Network
The REN price has been increasing rapidly since the beginning of May. However, the price has been following an ascending resistance line since October 2019, currently touching it for the third time and halting the monthly upward trend.
The MATIC price movement, meanwhile, looks quite bullish, since the price has initially broken out above its 200-day MA and the 250 satoshi resistance area afterward.
50% of Bitcoin Active Supply Has Not Moved in a Year
It looks like a growing number of Bitcoin investors have been putting their faith in the long-term prospects of the alpha-cryptocurrency. This is evident from the fact that Bitcoin’s one-year HODL factor has crossed 50% for the first time ever.
This is consistent with BeInCrypto’s observation over the past few months that more Bitcoin whales have been moving their assets to ‘HODL’ wallets than at any point in the recent past.
Tencent Plans $70B Investment in Blockchain and Other Emerging Tech
New reports are coming in that Tencent is following fellow Chinese conglomerate Alibaba in plugging billions of dollars into developing cutting-edge technology solutions. On Tuesday, Tencent revealed plans to invest 500 billion yuan (~$70 billion) in tech infrastructures like the blockchain, AI, and cloud computing in the next five years.