KirkBarton

BTC/USD: BTC remains under pressure

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Current trend

Last week, the BTC /USD pair tested 40000.00, but failed to consolidate above it and resumed its decline.

The pressure on the cryptocurrency sector is associated with the decision of the Chinese authorities to stop the activities of 26 mining farms registered in the Sichuan province and oblige energy companies not to provide them with electricity. It was assumed that miners will be allowed to work until autumn; however, according to the government's decision, mining activities in the province should be stopped by now. The hashrate of the Bitcoin network significantly decreased, and the interval between the production of new blocks could reach two hours. After the ban on registered mining companies, the authorities may continue to fight against private mining, which will be much more difficult to identify.

The comments of the head of the Federal Reserve Bank of St. Louis, James Bullard, who admitted the possibility of starting an increase in the rates of the Fed in 2022, and not in 2023, as previously assumed, may have caused the weakening of BTC's positions. This statement caused USD strengthening and put pressure on alternative assets.

Support and resistance

The price is at 33350.00 (the lower line of Bollinger Bands ) and is close to the key level for "bears" at 31250.00 (Murray ), which has been unsuccessfully tested several times over the past two months. If it breaks down, the decline may continue to 29000.00 (January lows) and 25000.00 (Murray ). A breakout of 37500.00 (Murray ) above the center line of Bollinger Bands will provide further growth to 40000.00 (upper line of Bollinger Bands ) and 43750.00 (Murray ). Technical indicators don't provide a single signal: Bollinger Bands are horizontal, the MACD histogram is increasing in the negative zone, and the Stochastic is reversing upwards from the oversold zone.

Resistance levels: 37500.00, 40000.00, 43750.00.

Support levels: 31250.00, 29000.00, 25000.00.
My trading profile is here and available for copy trading https://bit.ly/3yHrZJw

Comments