FX.co ★ Technical Analysis of BTC/USD for May 4, 2023

Crypto Industry News:

After discovering that a small kingdom in the Himalayas, Bhutan, is quietly hoarding cryptocurrency, the country is also mining bitcoin. Moreover, a country with less than 800,000 inhabitants uses green energy to power bitcoin mining operations.

Known for its focus on "gross national happiness" and scenic landscapes, Bhutan has found ways to tap into its vast hydroelectric potential, which accounts for 30% of its gross domestic product.

National officials, first revealed in local news and then when asked by Forbes, confirmed that mining started when the price of Bitcoin was around $5,000 in April 2019. The price per Bitcoin has since risen to around $28,000 at press time.

Reportedly, the kingdom was exploring partnerships to further expand its mining activities. Notably, negotiations are underway with Nasdaq-listed Bitdeer to secure 100 megawatts of power for a bitcoin mining data center in Bhutan. This partnership would increase Bitdeer's mining capacity by approximately 12%.

The scale of Bhutanese mining operations remains a mystery. Little information is available on the location, size and profitability of his mining farms. Some employees at Druk Holding and Investments have listed "cryptocurrency mining" as their skills on their LinkedIn profiles.

It is also not clear why the government chose not to disclose this project. However, it is known that the state holding company DHI has invested millions of dollars in cryptocurrencies, managing funds.

Technical Market Outlook:

The BTC/USD pair keeps trading lower after the swing high had been done at the level of $31,044. The correction is more complex and time-consuming, however the bulls are still trying to increase the volatility and break above the intraday technical resistance seen at $30,004. If there is a breakout above the short-term trend line resistance, then the next target is seen at $30,004 and then at $30,561. Only a sustained breakout above the swing high might change the outlook to more bullish, otherwise the market remains in corrective mode and horizontal trend to be continued for next few days.

Weekly Pivot Points:

WR3 - $32,219

WR2 - $30,455

WR1 - $29,759

Weekly Pivot - $28,692

WS1 - $27,995

WS2 - $26,928

WS3 - $25,165

Trading Outlook:

The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.