FX.co ★ Technical Analysis of BTC/USD for February 25, 2022

Crypto Industry News:

Companies legally operating as BTC mines in Kazakhstan have already moved around 30% of their equipment elsewhere.

The president of the National Association of Blockchain Industry and Data Centers of Kazakhstan - Alan Dorjiyev - told the media about what is currently taking place. He noted that the miners' decision was influenced by the continued problems with energy supplies and the expected tax increase. His organization represents the largest digital currency mining companies, which account for 70% of the Kazakh mining sector.

The association's report cites legislative documents indicating that the parliament of Kazakhstan is preparing to impose a tax on BTC miners of 10 tenge (approx. $ 0.02) per kilowatt hour (kWh) of electricity produced from domestic energy sources and 5 tenge per kWh of imported energy electricity. The fee for electricity generated from natural gas and renewable sources, excluding hydropower, will be 3 tenge per kWh.

In 2021, the authorities in Nur-Sultan introduced a surcharge of 1 tenge (then US $ 0.0023) per kWh of electricity used to issue cryptocurrencies.

Technical Market Outlook:

The BTC/USD pair short-squeeze has hit the level of $40k as the massive up candle had been made from the level of $36,140. The market still trades below the level of $40k, but it might be the matter of time for the bulls to break it and head towards the level of $41,531 which is the key short-term technical resistance. The immediate support is seen at the level of $37,983, but the momentum remains neutral.

Weekly Pivot Points:

WR3 - $48,426

WR2 - $46,630

WR1 - $41,615

Weekly Pivot - $39,882

WS1 - $34,802

WS2 - $32,798

WS3 - $28,034

Trading Outlook:

The market is bouncing after over the 80% retracement made since the ATH at the level of $68,998 was made. The level of $44,442 is the next key technical resistance for bulls, but the game changing technical supply zone is seen between the levels of $52,033 - $52,899. When this zone is clearly broken, the BTC is back to the up trend.