FX.co ★ Technical Analysis of BTC/USD for January 5, 2022

Crypto Industry News:

The government of Kosovo has stopped mining cryptocurrencies in the country due to power constraints during the winter.

Kosovo's Minister of Economy, Artane Rizvanolli, made the decision to stop mining cryptocurrencies in line with the recommendation of the Technical Committee for Emergency Measures for Energy Supply, local media reported.

The report notes that the government made a decision after Kosovo's energy supply fell below a certain level and began imposing cuts to electricity during peak consumption periods.

According to Rizvanolli, the government has decided to set up a technical commission to evaluate the emergency energy supply strategy in response to this situation. Based on committee recommendations last week, the government decided to take emergency measures, including stopping cryptocurrency mining within Kosovo's borders.

The report noted that law enforcement agencies were going to step in to stop cryptocurrency production and work on identifying locations where such operations take place. These actions are aimed at remedying a potential unexpected or long-term lack of electricity generation, transmission or distribution capacity to overcome the energy crisis without further burdening the citizens of the Republic of Kosovo.

As a result of low domestic production and exorbitant energy import charges, Kosovo's energy distribution company KEDS announced that power cuts will be introduced nationwide on December 22nd.

Technical Market Outlook

The BTC/USD pair has been seen testing the key short-term technical support located at the level of $45,638 again and this kind of market behavior does not look good for bulls. The intraday technical resistance is seen at the level of $47,595, but the key short-term technical resistance is located at the level of $51,913 (Pin Bar high) and $53,333, so the bulls have a quite a long road to make in order to resume the up move. Despite the recent complex and time consuming corrective decline in form of ABCxABCxABC pattern, the larger time frame trend remains up and only a clear and sustained breakout below the wave C low at $41,678 would change the outlook to bearish again.

Weekly Pivot Points:

WR3 - $56,509

WR2 - $54,179

WR1 - $49,960

Weekly Pivot - $47,650

WS1 - $43,745

WS2 - $41,329

WS3 - $36,987

Trading Outlook:

The ABCxABCxABC complex corrective cycle might be terminated at the level of $41,678 and the market is ready to continue the up trend, however the timing is not great at all as the volatility is low at the beginning of the 2022. According to the long-term charts the bulls are still in control of the Bitcoin market and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $39,474 is clearly broken on the daily time frame chart (daily candle close below $39,000 would be considered as a long-term trend change due to the lower low placement).