Bitcoin and Ethereum continue with pullback this week

Bitcoin chart analysis

Bitcoin (BTC) entered a short zone on the daily chart, breaking the support level to $ 39,500. At the moment, the bears are in control of the situation, as the trade volume remains high. If the bulls can’t take the initiative next week, there is a chance that a further drop to the next vital level at $ 38,000 will be seen soon. This is what happened, and the price of Bitcoin is now at $ 37,500, and now we are looking at the next support at $ 36,300.

Bullish scenario:

• We need a new positive consolidation and a return of prices above $ 40,000.
• Then our next resistance is at $ 42,000, and the additional resistance at that level is our moving averages that are in the range of $ 41,500-42500.
• A break above them would increase bullish optimism, which could further raise the price of Bitcoin to $ 44,000.
• This is a very important zone of resistance for us because we have tried to break through it several times this year, but without success.

Bearish scenario:

• We need continued negative consolidation and a drop to the first support to $ 36,300.
• If this zone does not last, there is a high probability that we will visit the next lower zone at $ 34,000, and we cannot rule out that we will test this year’s minimum at $ 33,000.

Ethereum chart analysis

After jumping to $ 2,750 this morning, the price of ETH made a quick turnaround and fell to $ 2,600, testing the previous support zone again. Due to all the concerns about the tensions between Ukraine and Russia, investors are moving away from cryptocurrencies and redirecting their capital to safer currencies and gold, which reached a price of 1,900 dollars last week.

Bullish scenario:

• We need a new positive consolidation that would raise the price above $ 2,800.
• Then, at $ 2,900, we find the MA20 moving average, while the MA50 is at the $ 3,000 psychological level.
• In the future, it would be positive for us for the price to continue further towards the $ 3,200 zone.
• An additional resistance at that level is the MA200 moving average.

Bearish scenario:

• We need to continue the current negative consolidation and break the support to 2600 dollars.
• Our next support is $ 2,500, then $ 2,400.
• If the bearish pressure continues to increase, it is possible that the price will drop to $ 2,200, this year’s minimum.
• A break below could take us to a lower psychological zone at $ 2,000.

Market overview

According to industry experts, Kazakhstan, one of the world’s leading bitcoin mining sites, is likely to lose its leading position in the share of the BTC hash rate in the next update of the hash rate distribution.

According to the Cambridge Bitcoin Electricity Consumption Index, Kazakhstan has had over 18% of the world hash rate of BTC since August 2021, after only the United States.

Bitcoin mining would eventually stop in Kazakhstan due to unsustainable electricity subsidies, as expected by Phillip Ng, vice president of corporate development at Thessaloniki Computing for the data center.

“We expect some mining to remain in Kazakhstan, but we do not expect it to be more than 10 to 15% of the global hashing rate in the future.” The reason is that electricity subsidies in Kazakhstan are unsustainable, “Ng told Cointelegraph. He cited January reports that authorities in Kazakhstan were considering cutting electricity subsidies to stabilize the country’s finances.

Another reason Kazakhstan is potentially losing its leadership in BTC mining is its reliance on the oil and gas industry.

“Given that Kazakhstan is considering raising taxes on crypto-miners, I think you will see that miners who have not been intimidated by the recent internet shutdown have another reason to look for a better long-term location for their operations,” Lesperance told Cointelegraph.

• Related: Crypto Glossary – Cryptocurrency terms to know before you invest!