Bitcoin, Ethereum, Dogecoin uncertainty in the crypto market
Looking at the chart in a four-hour time frame, we see that the price of Bitcoin during the Asian session made a big withdrawal from $ 48,000 to $ 45,000, a drop of $ 3,000 within 8 hours. We are now back in the previous support zone of around $ 45,000. This is now a critical price support area because if the support does not withstand, the price can quickly go below this zone and test the previous low again at $ 43935 from the previous week. We are testing this support zone for the third time, and the more often we test it, the higher the pressure as well as the probability of lowering to lower levels on the chart. For the bullish scenario, we need positive consolidation and a break above the 23.6% Fibonacci level at $ 46,165. After that, higher potential resistances await us in the zone around 38.2% Fibonacci levels at 47,500 and around moving averages that are in the area between $ 47,000-48500.
Ethereum chart analysis
Looking at the chart in a four-hour time frame, we see that the Ethereum price has made a big break below moving averages, falling below 38.2% Fibonacci levels to $ 3400 to the current $ 3100. Prices have dropped to this support zone several times already, but it has managed to rise to higher levels. Now we’re looking at whether they’ll make it one more time or make a break below and test new lower levels on the chart. To continue the bearish trend, we are looking for first support at $ 3,000, which matches the previous low in the last 15 days. A break below that support zone opens the door to $ 2,900 and then to $ 2,800. To return to the bullish trend, we need new positive consolidation and price growth above moving averages, which would be our technical support for a potential turnaround on the bullish side.
Dogecoin chart analysis
Looking at the chart in the four-hour time frame, we see that the price of Dogecoin is still under great pressure. We failed to break above the MA20 and MA50 moving averages and move to the bullish side. Otherwise, the price slipped to a new monthly low at 0.21450. If we don’t see a price recovery, we go down to the previous low from August to 0.19310. The price of 0.20000 is our psychological support. Here we can expect a certain consolidation from which a more concrete movement can be produced on the chart to determine the potential future trend.
Kyrgyzstan has taken another proactive approach to halt the rise in illegal cryptocurrency mining activities in the country after disrupting the actions of a network of unauthorized mining facilities.
The State Committee for National Security of Kyrgyzstan has detected and suppressed the illegal activities of about 500 bitcoin mining farms. The State National Security Committee said:
“More than 500 mining farms have been discovered that have been illegally connected to the electricity grid. It should be noted that mining farms later lead to a shortage of electricity produced because one set of equipment consumes about 1,500-3,000 kilowatts per hour.”
The operation of illegal crypto mining farms is not uncommon in Kyrgyzstan. Back in August last year, Blockchain. News reported that authorities had discovered a large illegal mining farm in the territory of the Free Economic Zone in Bishkek. A mining farm has been set up there to use the country’s cheap electricity. In addition to the illegality of these destroyed crypto-mining operations, the activities as a whole have come under fire from critics for their impact on the environment.
This consideration of environmental protection has forced the Chinese authorities to oust miners, legal and illegal, from the country. The eviction notice issued prompted the biggest migration of Bitcoin’s computing power from China, with miners looking for new focal points to set up camp. While Kazakhstan, the US, and Canada remained the main destinations, countries like Kyrgyzstan with relatively cheap electricity are not excluded either.
Today, countries or regulators are a bit torn about accepting investments in crypto mining, a move that has prompted miners to start exploring alternative energy sources. For example, North American mining actors are specifically considering switching to solar energy systems. If these renewable energy sources become the standard, a new sustainability model will be introduced, and countries like Kyrgyzstan will perhaps become more friendly to crypto mining.
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