Bitcoin Price Prediction
The BTC/USD closed at $41,839.0 after hitting a high of $42,270.0 and a low of $39,677.0. BTC/USD fell further, reaching its lowest level since August 2021. Similar to many other European countries, Kosovo authorities also banned crypto mining, which resulted in the seizure of nearly 300 cryptocurrency mining machines. The nation’s Minister of Energy and Economy said that this seizure would save tens of thousands of euros per month. Kosovo is currently struggling with an energy crisis prompted by a sharp price increase in electricity.
To eliminate power shortages and curb consumption during the winter, the government banned cryptocurrency mining, the first seizure by the government since the announcement of the ban. The latest ban on crypto mining added negative pressure on BTC/USD and dragged its prices to their lowest level in five months. Furthermore, a study from the Library of Congress in the United States found that the list of countries that have adopted regulatory policies that raise taxes or ban cryptocurrencies has grown in the last three years. As of November last year, the total number of countries that had banned the use of cryptocurrencies was nine, among which China stands out.
While countries are banning crypto mining operations from saving energy and the crypto market is crashing, many investment firms plan to dig into the opportunity and buy the dip in leading cryptocurrencies. The Nasdaq-listed Canadian cryptocurrency mining firm Bitfarm has announced that it invested about $43.2 million in BTC after the price dropped around 12% in the first week of the year. The latest purchase of BTC pushed its total holding of BTC to 4300 BTC, worth about $180 million.
On the other hand, Spanish lawmakers saw the Bitcoin mining collapse in Kazakhstan as an opportunity and decided to make Spain the next bitcoin mining hotspot. The deputy for the Spanish Ciudadanos political party, Maria Munoz, has proposed a bill to make Spain a BTC mining hub following the internet shutdown that caused a mining outage in Kazakhstan. This news kept the losses in BTC/USD limited for the day.
Additionally, the United Arab Emirates is taking a different approach while many countries are banning bitcoin and digital assets. The county has been consistently enacting its vision of becoming a blockchain capital by providing frameworks to guide crypto businesses operating under the laws. This news also capped a further decline in BTC.USD prices on Monday.
BTC/USD Intraday Technical Levels
Pivot Point: 41262.0
BTC/USD - Technical Outlook
The BTC/USD continued to fall below the $40,500 support level. BTC even fell below the $40,000 mark, trading as low as $39,659. There has recently been a powerful recovery wave above the $40,000 mark. The price has risen above the $40,500 and $41,200 resistance levels. The bulls even pushed the price beyond the 50% Fib retracement level of the latest drop from the $42,739 swing high to the $39,659 low.
On the upside, the first big resistance is located near $42,750. The next significant resistance is located near the $43,500 level. It is close to the 1.236 Fib extension level of the recent slide from the swing high of $42,739 to the low of $39,659. Any further gains might push the price up to $44,500. The next significant resistance level is near $45,500, where the bears appear. If bitcoin does not return over $43,500, it may begin a new drop. On the downside, there is immediate support near the $41,800 level and the 100 hourly SMA.
The first significant support is near $41,500, as is the broken trend line. A drop below the trend line support on the downside might push the price down to $41,000. If the price continues to fall, it may reach the $40,000 support level in the next sessions. All the best!
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