FX.co ★ Technical Analysis of BTC/USD for September 19, 2022

Crypto Industry News:

Whyalla's "steel city" in South Australia has become home to a new cryptocurrency mining facility that will run on electricity generated from solar energy. The 5 megawatt facility operated by Lumos Digital Mining will mine Bitcoin, which is often blamed for its energy-intensive nature.

Australian national radio ABC notes in the report that as the world tries to cut energy consumption, mining the largest cryptocurrency uses more energy than medium-sized countries like Argentina.

Local authorities see the cryptocurrency mining project using solar energy as evidence that generating Bitcoin can be more environmentally friendly. Commenting on the project, Nick Champion, South Australia's Minister of State for Trade and Investments, explained:

"This is important for decarbonising the Blockchain, which is a very energy intensive industry. I think this is the start of a new economy in Whyalla," he said.

A government official also hopes that in the future, other data centers will mine cryptocurrencies using renewable energy.

Technical Market Outlook:

The recent low at the BTC/USD was made at the level of $18,239 as the market extends the sell-off. The levels of $18,665 and $18,940 will now act as the technical resistance for bulls. The weak and negative momentum supports the short-term bearish outlook towards the level of $17,600 again, however the market conditions remains extremely oversold, so the pull-back and resistance test is welcome.

Weekly Pivot Points:

WR3 - $21,295

WR2 - $20,039

WR1 - $19,341

Weekly Pivot - $18,764

WS1 - $18,064

WS2 - $17,526

WS3 - $16,271

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues without any indication of a possible trend termination or reversal. 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 at the psychological level of $20,000 had been violated, the new swing low was made at $17,600 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout.