FX.co ★ Technical Analysis of BTC/USD for May 12, 2023

Crypto Industry News:

Mining company Hut 8 Mining (HUT) saw first-quarter revenue fall more than -64% to CAD 19 million ($14.16 million) year-over-year. Previously, the company was forced to shut down some machines due to a dispute with its energy supplier.

Revenue fell -13% from the previous quarter, which was below analysts' expectations. The company posted an EPS gain of CAD 0.47 versus a loss forecast of CAD 0.15 on FactSet.

As the cryptocurrency mining industry begins to recover from a brutal crypto winter in which majors such as Compute North and Core Scientific (CORZ) filed for Chapter 11 bankruptcy protection, Hut 8 had to shut down around 8,000 machines at its facility in Ontario. The dispute with the energy supplier has been going on since mid-November. Since then, 1,000 excavators have been restored.

In addition, the Drumheller branch is operating at only 15% capacity due to electrical problems that damaged the equipment. The site probably accounts for about 0.9 EH/s of Hut 8's total computing power of 2.6 EH/s.

It is worth noting that Hut 8 is in the process of merging with US Bitcoin Corp. (USBTC), a private miner operating in New York and Texas.

Technical Market Outlook:

The BTC/USD pair has made a new swing low at the level of $26,150 (at the time of writing the article), so the bears are in full control of the market and the next target for bears is seen at the level of $25,257. This level is very close to the 50% Fibonacci retracement level seen at $25,335. The intraday technical resistance is located at $26,500.

The bigger time frame correction is more complex and time-consuming, however the bulls are still trying to increase the volatility and break above the intraday technical resistance seen at $30,004. Only a sustained breakout above this level might change the outlook to more bullish, otherwise the market remains in corrective mode and horizontal trend to be continued.

Weekly Pivot Points:

WR3 - $29,884

WR2 - $29,080

WR1 - $28,607

Weekly Pivot - $28,315

WS1 - $27,843

WS2 - $27,550

WS3 - $26,786

Trading Outlook:

The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.