04 May chart overview for Bitcoin and Ethereum

• The price of Bitcoin continues its recovery after it fell below the $ 38,000 level again yesterday.
• The price of ethereum fell again yesterday, forming a new low at $ 2,754.
• The Central African Republic has adopted the cryptocurrency bitcoin as a legal tender.
• The risk of banning Bitcoin mining.

Bitcoin chart analysis

The price of Bitcoin continues its recovery after it fell below the $ 38,000 level again yesterday. We are now at $ 39,000 prices and testing the May resistance zone. Fear is still present in bitcoin holders because there is a possibility that the price will fall if the Fed raises the interest rate tonight and continues its hawkish policy. The Fed is likely to raise its interest rate to 2.5% by the end of the year. Something like this would lead to a continued decline in bitcoin prices. Last week, Bitcoin failed to stay above the $ 40,000 level, followed by a previous drop in price.

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Ethereum chart analysis

The cryptocurrency market failed to keep pace with traders ’expectations as BTC could not rise above $ 40,000, leading to the decline of Ethereum and other altcoins. This resulted in a 0.81% drop in the global market in the last 24 hours of trading to $ 1.73 trillion. The price of ethereum fell again yesterday, forming a new low at $ 2,754. After that, we have a recovery to the resistance zone at $ 2880. The positive thing about ethereum is that we are now above the MA200 moving average. Such a move could increase optimism to continue the price recovery, and our target is the previous high from April 29 to the $ 2980 level. If the dollar strengthens sharply tonight, then we expect a new withdrawal and testing of previous lows. Due to the sales panic, breaking support and falling below is very possible.

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Market overview

The Central African Republic has adopted the cryptocurrency bitcoin as a legal tender, and it is the second country in the world to do so, after El Salvador. Members of parliament unanimously adopted the decision, and President Faustin Archangas Tuadera signed the bill, making the bitcoin a means of payment like the national currency, the franc. An official from the presidential office said that with this move, the Central African Republic was put on the map of the countries with the greatest courage and vision, the BBC reported. This country is one of the poorest in the world, and in the last few years, it has been affected by armed conflicts.

Europe, the risk of banning Bitcoin mining

There are two crucial details that need to be highlighted to understand the real risks.

The first is that New York State will not wholly ban PoW-based mining but will instead impose a “full review” of the overall environmental impact for mining farms that mine PoW-based cryptocurrencies, such as Bitcoin.

That would not be a complete ban but a work ban for all miners who cannot prove that they have an impact on the environment below a certain threshold.

However, it is worth noting that anyone who buys electricity from outside suppliers may find it so difficult to prove that they are using clean energy that they may have to give up mining.

Similar thinking will likely be followed in Europe, as the only real big problem with PoW is energy consumption, especially from pollution sources. It is not about the whole of Europe, but only about the 27 member states of the European Union.