Bitcoin Price Prediction
The BTC/USD was closed at $41,676.0 after placing a high of $42,581.20 and a low of $41,180.0. BTC/USD continued its consolidated momentum and turned red again. It has been 12 days since BTC/USD was moved sideways and stuck in a range of $41,000 -$42,000. The European Securities and Markets Authority Vice-Chair has raised concerns over the growing use of renewable energy for bitcoin mining. Erik Thedeen warned that cryptocurrencies could threaten climate change goals, and bitcoin mining has become a national issue. He called upon the regulators in Europe to take special exception to proof-of-work mining, which is primarily used by bitcoin. He called proof-of-stake a better and more energy-efficient alternative and stressed the need to shift the industry to more efficient technology.
The bitcoin network’s energy usage was one of the most controversial topics in 2021, which grabbed the attention of Elon Musk, Jack Dorsey, and Michael Saylor. Tesla ended the bitcoin payment option after discovering the negative impact the bitcoin network’s energy usage has on the environment.
According to Thedeen, the financial industry and many large institutions are involved in cryptocurrency markets and claim environmental, social, and governance responsibilities. He called on European authorities to ban proof-of-work mining activities and said that proof-of-stake mining should be encouraged. This news added negative pressure on Bitcoin prices as the leading currency is based on proof-of-work consensus.
Meanwhile, the Pakistani bank Alfalah has reportedly started sending SMS alerts to its customers, asking them to avoid cryptocurrency transactions using its banking channels. This action by Bank Alfalah came shortly after the State Bank of Pakistan (SBP), the country’s central bank, presented a statement to the Sindh High Court recommending a complete ban on cryptocurrencies. Currently, the law and finance ministries of the country are reviewing the report from SBP to decide on the legal structure of cryptocurrencies. This news also had a negative impact on the whole cryptocurrency market and added to the further loss in BTC/USD prices.
On the other hand, the Tahini Restaurant, a Canada-based Middle Eastern restaurant chain, which decided to convert its savings into Bitcoin in August 2020, has reported earnings of 300% gains. During the pandemic and lockdowns, when restaurants and the leisure industry faced shutdown, the restaurant owners Aly and Omar Hamam and their cousin Ahmed decided to choose a better alternative to saving cash and chose Bitcoin for it. At that time, the price of a crypto asset was roughly $12,000.
According to Aly, converting their savings into BTC in August resulted in over 300% gains and protected them against high inflation. It worked just as they intended it to. The owners were proud of their decision as the investment allowed them to expand their business from three restaurant locations to nine when most in the industry were facing financial difficulties. They have planned to increase the number to 25 by 2022. This report added some support to the declining price of BTC/USD on Wednesday.
BTC/USD Intraday Technical Levels
Pivot Point: 41812.4
BTC/USD – Technical Outlook
Bitcoin’s price struggled to begin a meaningful recovery wave and fell below $42,000 for a lengthy period. BTC has even breached the $41,500 support level and is now trading underneath the 100 hourly SMA (simple moving average).
The price has now corrected higher after forming a low near $41,159. The price rose just above the $41,800 resistance level. The price surpassed the 23.6 percent Fib retracement mark of the primary fall from the $43,800 swing high to the $41,159 low.
The next significant barrier is near $43,000, beyond which the bulls may try for a test of $43,500. Any more increases may require a challenge of the $44,500 resistance level. If Bitcoin does not begin a new upward trend above $42,500, it may start a new downward trend. On the downside, there is immediate support near $41,600.
The first significant support is evident at about $41,200. A breach underneath the $41,200 support level could expose another dip. The next key support is around $40,500, beyond which the price exposes towards the $40,000 mark. All the best!