Symmetrical Triangle Pattern
The BTC/USD was closed at $33554.4 after placing a high of $35043.5 and a low of $32821.0. Bitcoin extended its loss and dropped for a second consecutive session on Thursday despite improving market sentiment. After China's crackdown on the whole crypto market, Kazakhstan has become increasingly popular for cryptocurrency mining. The country's president has signed a new law that will introduce an extra tax for crypto miners.
Kassym Jomart Tokayev, the President of the Republic of Kazakhstan, recently signed a new law that imposes an additional tax fee on energy utilized by crypto miners operating in the country. The new fees will take impact from the inception of the new year in January 2022. On the other hand, Mike Novogratz, the billionaire CEO of Galaxy Digital, believed that Ethereum could become the world's largest cryptocurrency. He stated that there was no doubt that bitcoin has come to stay, and so, the community still needs to work hard to educate financial regulators on the working of the flagship crypto.
As bitcoin has been adopted as the official legal currency in El Salvador, many other sovereign states have shown willingness to go on with the same move. However, Novogratz believed that the biggest threat to bitcoin's mainstream adoption journey was the lack of agreeable crypto regulations. Novogratz also said that the latest crackdown on bitcoin mining from China was a positive development for the global crypto space. China has been involved in a conflict against bitcoin and other cryptocurrencies since 2017; it has banned crypto mining operations this year and forced Chinese miners to move abroad to do such activities.
Similarly, the report also revealed that the members have said that 67.6% of the total energy used to mine bitcoin came from sustainable sources, which ensured a much lower environmental influence than that of the industry in other countries, especially China. The miners in China mainly concentrated on the Bitcoin hash rate, and a large portion of the energy used to mine bitcoin was generated by coal-fired plants there.
Furthermore, a report on CNBC enlisted the five biggest risks faced by Bitcoin, including regulations, high volatility, environmental concerns, stable coin scrutiny, and meme coins and scam. According to the article, the biggest issue faced by bitcoin was regulations, as China has clamped down on its cryptocurrency industry, and UK regulators also banned leading digital currency exchange Binance from undertaking regulated activities. The United States has also not figured out how to properly regulate the industry.
On the other hand, the extreme swings in bitcoin and other cryptocurrencies have also been holding the leading currency to reach its peak as investors fear the high volatility attached to it. Thirdly, bitcoin mining equipment requires much electricity to run, and energy consumption has risen considerably over the years. High energy consumption has a significant impact on the environment, which is also holding bitcoin back. Similarly, stable coin scrutiny and popularity of meme coins and the rising number of scams in the crypto industry have also been a challenge to bitcoin lately.
BTC/USD Intraday Technical Levels
Support Resistance
32569.1 34791.6
31583.8 36028.8
30346.5 37014.1
Pivot point: 33806.3
BTC/USD - Technical Outlook
The BTC/USD pair is trading with a slight bearish at 32,796, gaining support at 32,445. The support level is extended by an upward trendline on the 4- hour timeframe. The Bitcoin has crossed below 50 periods EMA extending resistance at 33,650 and demonstrating selling bias. The bearish crossover of the 32,445 support level can expose Bitcoin price towards the next support area, 30,565 and 29.244 support areas. At the same time, the breakout of 33,650 resistance can expose BTC toward 35,555 and 36,665 areas. All the best!
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