FX.co ★ Technical Analysis of BTC/USD for May 2, 2022

Crypto Industry News:

The draft of the new federal law "On mining in the Russian Federation" was submitted to the Duma on Friday 29 April, the chamber's website said. The draft law aims to break the cryptocurrency industry out of the "gray" economy in Russia, a country rich in energy resources and favorable climatic conditions for mining cryptocurrencies.

The authors of the project describe the minting of digital coins as an activity with the use of information infrastructure and equipment located in the Russian Federation, resulting in the creation of a digital currency. They also introduce legal definitions for digital currency trading, mining pools, and mining facility operators.

The law provides for the creation of a special registry for cryptocurrency miners, which will be kept by an authorized federal body. Private individuals engaged in Bitcoin mining will be able to register as sole traders or self-employed if their electricity consumption exceeds government-stipulated limits.

Only registered entities and people will be able to mine cryptocurrencies, RBC Crypto reported, citing the document. Mine operators in Russia will be required to keep records of minted cryptocurrencies, their types, any agreements with other entities and coin buyers, exchange operators, payment systems and banks.

If Duma MPs pass the law, there will be an annual "amnesty" for registered miners, during which they can settle any outstanding issues related to the customs clearance of imported equipment, pay the relevant taxes and comply with applicable laws. This includes the recently adopted rules for money transfers outside the Russian Federation.

Technical Market Outlook:

The BTC/USD pair had broken above the short-term trend line resistance, however, in order to terminate the down trend, bulls need to break through the last swing high located at $42,952 and head towards the level of $50k. The nearest technical resistance is seen at the level of $40,785 and the immediate technical support is located at $38,554 and $38,885. So far the local high was made at the level of $39,907, so bulls need to try harder of the want a bigger retracement to occur. The level of $37,725 was tested so many times, that it will act as an important short-term technical support, so pleas keep an eye on it.

Weekly Pivot Points:

WR3 - $43,093

WR2 - $41,987

WR1 - $39,992

Weekly Pivot - $38,683

WS1 - $36,640

WS2 - $35,353

WS3 - $32,285

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support is seen at the level of $32,899.