Crypto Industry News:
As Bitcoin prices dropped, miners' total revenues from transaction fees and mining rewards have dropped to annual lows of nearly $ 15 million. However, the simultaneous decline in the price of graphics cards or GPUs is expected to help miners compensate for operating costs in the face of the ongoing bear market.
Bitcoin mining revenues fell 79.6% in the nine months from reaching a record $ 74.4 million in October. In addition, the global chip shortage and the coronavirus pandemic drove the prices of the most important part of the mining platform - the GPU - further impacting miners' spending.
As card makers resume operations around the world, GPU prices have plummeted with some cards selling below their suggested retail price. In May alone, GPU prices fell by an average of more than 15% as supply exceeded market demand. Moreover, the recent influx of GPUs has forced sellers in the secondary markets to cut the exorbitant prices of the mining rigs they use.
As previously reported, several public mining companies are well-positioned to weather the long-term downturn as low revenues continue to hold down the operating costs of mining facilities.
Moreover, the sharp drop in GPU prices has opened a small window of opportunity for small-scale miners to purchase more powerful and efficient mining equipment. Combined with the lower hashrate speed requirement of 203.6 exa hash per second, miners now need less processing power to successfully mine a block on Bitcoin's Blockchain.
Technical Market Outlook:
The BTC/USD pair has been seen testing the level of $20,854 which is the local technical support for bulls. In a case of a bounce from the support, the next target is the technical resistance located at $23,238. In a case of a deeper pull-back, the technical levels are located at $19,616, $19,765 and $19,817. The larger time frame outlook for Bitcoin remains bearish, however, we have unconfirmed Bullish Engulfing pattern on the Daily time frame chart, so please stay focused and keep an eye on the key technical levels.
Weekly Pivot Points:
WR3 - $27,913
WR2 - $24,489
WR1 - $23,135
Weekly Pivot - $21,065
WS1 - $19,711
WS2 - $17,641
WS3 - $14,217
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames continues. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support at the psychological level of $20,000 had been violated, the new swing low was made at $17,600 and if this level is violated, then the next long-term target for bulls is seen at $13,712.