Bitcoin and Ethereum: The bearish trend for the fourth day.
- After the price of bitcoin reached $ 22,000 on Sunday, a pullback to the current $ 20,000 followed.
- The price of Ethereum is already in the bearish trend for the fourth day.
- Uzbekistan and Bitcoin mining
Bitcoin chart analysis
After the price of bitcoin reached $ 22,000 on Sunday, a pullback to the current $ 20,000 followed. If the price of bitcoin does not find support here, we will see a new drop below this key level. For something like that, we need the continuation of this negative consolidation, and after that, we can expect a further withdrawal to lower levels of support. Potential lower targets are $ 19,000 and $ 18,000. For the bullish option, we need new positive consolidation and move up from this support zone. After that, the price could go up to the $ 21,000 level. An additional resistance at that level is the MA200 moving average. A break above could send us back to the $ 22,000 level.
Ethereum chart analysis
The price of Ethereum is already in the bearish trend for the fourth day. Yesterday the price dropped below $ 1200; today, that trend continued, and the price stopped at $ 1110. Consolidation is now happening just above $ 1100. We need positive consolidation and a return to the $ 1150 level for the bullish option. After that, we could continue towards the $ 1200 level, and if we stay at that level, we will have a chance to continue further towards $ 1300. We need a break below the $ 1100 level for the bearish option. Potential lower support targets are our $ 1050 and $ 1000 levels. June’s lower low awaits us at the $ 900 level.
Market overview
Uzbekistan and Bitcoin mining
The National Agency for Potential Projects (NAPP) in Uzbekistan has announced its claims against crypto mining operators. This would only allow companies that use solar energy to mine Bitcoin or other cryptocurrencies. As an additional complication, miners should own a solar photovoltaic power plant to use for energy.
The executive order also obliges each mining operator to obtain a certificate and register in the national register of cryptocurrency mining companies. This procedure requires a short list of documents and should not take more than 20 days from the final decision of the licensing authority. The certificates would be valid for one year after registration.
All currency obtained from mining activities would be tax-free, although mining farms would face special energy consumption tariffs set by the Uzbek government. However, traded operations with mined property would have to be performed only on stock exchange platforms registered in Uzbekistan. Mining of anonymous cryptocurrencies would be banned.
