Crypto Industry News:
Stablecoin issuer Tether has announced that it will start mining bitcoin in Uruguay.
In a news release on May 30, it was announced that, in addition to investing in energy production in Uruguay, it plans to launch a mining arm in the South American country "in partnership with a local licensed company." The stablecoin issuer claimed that the venture would use renewable energy sources aimed at "sustainable" Bitcoin mining. He also added that he plans to hire additional team members.
Tether cited Uruguay's ability to generate 94% of its electricity from renewable sources, including wind, solar and hydro, as well as from a reliable grid. The job listings on its website at the time of the writing of the article also suggested expansion into South Africa and Brazil.
The mining announcement came after Tether said it plans to "dedicate up to 15%" of its profits to BTC purchases "on a regular basis." The stablecoin issuer announced that it held approximately $1.5 billion in bitcoin as of the first quarter of 2023. This is 2% of its total reserves. Tether kept most of its holdings in cash, cash equivalents and US Treasury bills.
Technical Market Outlook:
The BTC/USD pair is down more than 5% since the local high was made at the level of $28,446. The bears moved below 50% Fibonacci retracement as well and the local low was made at the level of $27,000 (at the time of writing the analysis). The next target for bears is seen at $26,853 which is a 61% Fibonacci retracement level. The down move is being backed up by momentum, which is back below the level fifty (negative sentiment prevails).
Weekly Pivot Points:
WR3 - $29,254
WR2 - $28,640
WR1 - $28,255
Weekly Pivot - $28,028
WS1 - $27,645
WS2 - $27,415
WS3 - $26,803
Trading Outlook:
The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.