Bitcoin is sinking lower and lower

Bitcoin is sinking lower and lower

Bitcoin chart analysis

Bitcoin is still a strong bearish trend, currently consolidating around $ 40,500. We are again in the $ 40,000 zone, where we were last in September last year. If this bearish pressure continues, and we see a break below the previous year’s trend line, we may expect the price to drop to around $ 30,000. The situation in Kazakhstan due to the energy crisis has shaken the mining of cryptocurrencies in that country. Kazakhstan is the second country in the world by the number of miners who mine Bitcoin.

Bullish scenario:

We need new positive consolidation and a turnaround.
We have to climb to $ 48,000, where the MA20 moving average awaits us, and in the zone around $ 50,000, we come across the MA200 and MA50 moving averages.
The resistance zone of $ 50,000-52,000 is critical because we failed to break above in the previous attempt.

Bearish scenario:

We need to continue this negative consolidation and further raise the price of Bitcoin below the $ 40,000 level.
The break below this support zone and the lower trend line opens the door to a lower zone of about $ 30,000, a big consolidation last year.
A price below $ 30,000 takes us back to the 2020 period.

Bitcoin news

WisdomTree is a $ 76 billion asset manager, and last Thursday announced it had added exposure to Bitcoin futures under its commodity-focused ETF, called a Managed Future Strategy. The purpose is to add exposure to Bitcoin-related futures for this fund up to 5% of the fund’s total value but without direct investment in BTC. It has added approximate funding of 1.3%. Schwartz found that many investors buy gold as part of their commodity strategies, and since Bitcoin plays a similar role as gold, they decided to include it in their commodity ETF. He said a 3% allocation for Bitcoin Futures to his Enhanced Commodity Strategy Fund (GCC) in October.

Kosovo bans cryptocurrency mining

The Kosovo government declared a 60-day emergency to deal with its energy crisis in December, followed by a general ban on bitcoin and cryptocurrency mining last week, which forced Kosovo to import electricity from neighboring Serbia. However, due to its infrastructure problems combined with low temperatures and heavy snow, Serbia has lost a third of its energy capacity, resulting in higher prices.

Kosovo police have reported the seizure of more than 300 Bitcoin mining devices since raids on miners began last week. On January 6, police said they seized 67 mining devices “suspected of being used to produce cryptocurrencies” in a raid in South Mitrovica. A statement on January 8 followed this, and the authorities announced that they helped the customs service in seizing another 272 Antminer Bitcoin mining machines in the municipality of Leposavic. One person was arrested during the raid, police said. In a separate press release issued the same day, Kosovo police said they also seized an additional 39 bitcoin mining machines north of Pristina, the country’s capital.

The post Bitcoin is sinking lower and lower appeared first on FinanceBrokerage.

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