Bitcoin Steady at Key Support, What Could Trigger Solid Recovery?
Arslan Butt•Wednesday, January 5, 2022•2 min read
- There is strong support around the $46,400 mark, with the first big support close to $46,100.
- The news that Kosovo has joined China in prohibiting crypto mining added to the bearish pressure on BTC/USD
- Peru is one of the four Latin American countries with the highest adoption of Bitcoin and other cryptocurrencies
BTC/USD ended the day at $45,830.0, having reached a top of $47,546.0 and a low of $45,583.0.
BTC/USD fell for the third day in a row, sliding for another session under the existing negative momentum. According to recent reports, the government of Kosovo has prohibited Bitcoin mining and all other cryptos. The decision to prohibit crypto mining was made in order to preserve electricity. Kosovo presently imports more than 40% of its energy, and lignite, which emits poisonous chemicals into the atmosphere, accounts for 90% of its energy production. Last year, the government declared a state of emergency for 60 days to allow funding to be reallocated to energy imports.
Bitcoin Live Rate
The news that Kosovo has joined China in prohibiting crypto mining added to the bearish pressure on BTC/USD and pulled its prices down. China has outlawed cryptocurrency mining in order to achieve the government’s aim of becoming carbon neutral by 2060. According to estimations, BTC mining emits 22 to 22.9 million metric tons of CO2 per year. Renewable energy is prohibitively expensive, and carbon emissions will continue to climb. This spurred China to prohibit cryptocurrency mining, and now Kosovo has followed suit, adding weight on BTC/USD values.
Furthermore, the recent law introduced by Peruvian politicians to control cryptocurrencies could be contributed to the decline in BTC/USD pricing. According to the bill, Bitcoin is an asset with a book value that can be used as a capital asset when forming a company. The bill’s goal is to provide a regulatory framework for Bitcoin and other cryptocurrencies. It was presented to Congress in December and is now awaiting debate.
Peru is one of the four Latin American countries with the highest adoption of Bitcoin and other cryptocurrencies. The country is prepared to host a debate in parliament on the merits and risks of cryptocurrency trading in the coming weeks. The announcement that Peru may discuss cryptocurrency legislation put downward pressure on BTC/USD and pulled it lower.
Increased strength of the greenback, along with increased fears about global economic recovery in the event of the discovery of a new coronavirus variety, IHU, put pressure on BTC/USD, since the two have a negative correlation. The greenback was solid across the board due to its safe-haven character, as it received inflows when risk appetite faded in the market.
Bitcoin Technical Outlook – Choppy Session Continues
There is strong support around the $46,400 mark, with the first big support close to $46,100. If the price goes below $46,100, it may drop as low as $45,500.
Daily Technical Levels
Support Resistance
45093.4 47056.4
44356.7 48282.7
43130.4 49019.4
Pivot Point: 46319.7
Additional losses could result in a deeper decline, to below the $45,000 support line. In this case, the price may fall to $43,200. Furthermore, the broad-based strength of the US dollar was considered one of the primary factors holding the
BTC/USD coin down. BTC/USD is now trading at 47,121.0, with a 52-week high of 46,740.9 and a low of 46,740.9.
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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