FX.co ★ Technical Analysis of BTC/USD for December 6, 2022

Crypto Industry News:

According to researchers from Cambridge University, in the 13-year history of Bitcoin, BTC miners released almost 200 million tons of CO2 into the atmosphere during their work. Realistically, the solution is not to stop bitcoin mining operations, which are crucial for logging and validating crypto transactions. BTC mining must continue, which is why PEGA Pool is entering the scene with "Plan B: Trees."

Owned and managed by the British, the PEGA Pool mine tries to be environmentally friendly. One of its goals is to reduce the negative impact of bitcoin mining and create a more sustainable and environmentally friendly crypto industry for everyone.

Planting trees is a smart way to reduce the sector's carbon footprint by offsetting the amount of CO2 released during the BTC mining process. However, a few trees are not enough. Currently, there are not enough trees in the world to offset Bitcoin's carbon footprint and counteract the vast amount of greenhouse gases that the crypto industry is spewing into the atmosphere.

To put this into perspective, it takes about 15 trees to consume the CO2 emitted by the average person every day. We are talking only about fossil fuels that are released in the production of the food that each of us consume.

Technical Market Outlook:

Bitcoin spiked up over 12% already and is moving towards the next technical resistance seen at $17,600. The 38% Fibonacci retracement level of the last wave down is seen at $17,664, so this level might be tested as well (in a form of a spike up etc.). The momentum is strong and positive, but the market conditions are now extremely overbought on the H4 time frame chart, so a pull-back towards the local technical support levels seen at $17,173 and $16,814 is possible. There is no indication of the down trend on Bitcoin to terminate or reverse yet, so the next target for bears is seen at the level of $13,563 (2019 high).

Weekly Pivot Points:

WR3 - $17,953

WR2 - $17,573

WR1 - $17,420

Weekly Pivot - $17,221

WS1 - $17,068

WS2 - $16,869

WS3 - $16,516

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 $15,555 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 in the long term.