Technical analysis of BTC/USD for Jan 2, 2020

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Crypto Industry News:

Bitcoin miners in the Chinese province of Sichuan are under pressure from local authorities to limit their activities due to electricity shortages.

In the dry season, which lasts from October to April, the supply of electricity drops drastically in southwestern China, which is why local authorities tighten screws to mining companies to reduce their activities.

Running Bitcoin mining companies is officially banned, but they are tolerated in the Sichuan province in the rainy season when hydroelectric power plants produce more energy than necessary, using the excess energy produced.

However, in the dry season, local authorities are trying to ensure sufficient energy supply for residents and local businesses, and are therefore turning their attention to regional Bitcoin farms that consume excessive amounts of electricity to operate.

Chinese authorities are not only dealing with mining farms. Power plants are also chasing. Two power plants received fines of around $ 140,000 in December for supplying Bitcoin electricity without obtaining a power license.

China, whose Bitcoin miners are currently responsible for up to 66% of the global hash rate, continues to fight the illegal use of energy by cryptographic miners. In mid-November, regulators in the Chinese autonomous region of Inner Mongolia tightened control over cryptocurrency mining companies by sending control units to ensure the rectification of cryptocurrency mining companies in the region.

Technical Market Overview:

The BTC/USD pair has been trading inside of a tight range located between the levels of $7,461 – $7,195 for all the first days of 2020, so not much has changed yet. At the top of this range, another Pin Bar candlestick pattern has been made, which might indicate a possibility of a wave down. The key technical resistance is still located at the level of $7,601, so any rally higher must break through this level. On the other hand, the key technical support is seen at the level of $6,938 and this is where the price seems to be heading now.

Weekly Pivot Points:

WR3 – $8,243

WR2 – $7,942

WR1 – $7,641

Weekly Pivot Point – $7,288

WS1 – $6,995

WS2 – $6,660

WS3 – $6,345

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Technical analysis of BTC/USD for 02/01/2020:

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