FX.co ★ Technical Analysis of BTC/USD for September 16, 2021

Crypto Industry news:

The latest data suggests that Bitcoin has used more energy this year than in the whole of 2020.

Accurate data on energy consumption is variable and not easy to calculate accurately, but the trend is clearly increasing. The Cambridge Bitcoin Electricity Consumption Index currently estimates that Bitcoin is expected to use up to 95.68 TWh by the end of the year. This is about the same as the energy consumption in the Philippines or Pakistan.

A study by Science Direct highlighted another problem - electronic waste. E-waste generally refers to waste computer equipment and electronics. The report suggests that one transaction on the Bitcoin network produces 272 grams of e-waste, mostly old mining equipment.

BTC miners "are struggling with an increasing amount of short-lived equipment that could exacerbate the growth of global electronic waste." E-waste production was 30.7 kilotons in May 2021.

The study concluded that Bitcoin can produce up to 64.4 kilotons of e-waste at the peak BTC price levels observed in early 2021.

According to Statista, Bitcoin accounts for about 0.11% of the estimated global e-waste in 2021, or 57.4 million metric tons.

In the scale of total global electricity consumption, Bitcoin mining is only 0.43%. This is less than the estimated 104 TWh used by refrigerators in the United States alone, according to the University of Cambridge.

Technical Market Outlook

The BTC/USD pair has broken above the technical resistance located at the level of $48,068 and made a new local high at the level of $48,465 (at the time of writing the article). Moreover, to 50% Fibonacci retracement level has been violated as well. The support is located at the level of $47,290. The next target for bulls is seen at the level of $49,162 (61% Fibonacci retracement) and $49,316 (technical resistance). The positive and strong momentum supports the short-term bullish outlook despite the overbought market conditions.

Weekly Pivot Points:

WR3 - $59,391

WR2 - $56,198

WR1 - $49,661

Weekly Pivot - $46,351

WS1 - $40,043

WS2 - $36,782

WS3 - $30,164

Trading Outlook:

According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $59,506. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).