Bitcoin price reaches a critical resistance area, will it continue above it?
The past few hours have witnessed a noticeable decline in the price of Bitcoin, which first fell below $43,000, following the approval of spot ETFs.
After this decline, the price of Bitcoin declined further and has now reached the level of $41,000.
This decline raises questions about the factors affecting Bitcoin price performance in the digital market.
In this context, the expert and Bitcoin market analyst, “Benjamin Quinn,” provided a detailed analysis of the current conditions and potential trends of the cryptocurrency market, indicating the possibility of further slight declines in the price.
Quinn explained how he uses a set of technical indicators, including the 20-week simple moving average and the 21-week exponential moving average, to analyze market trends.
These indicators shed light on the critical points that Bitcoin may face, especially around the important support level at $36,000.
Cowen pointed out the challenges associated with accurate price forecasting, stressing the importance of monitoring the $41,000 level as a potential indicator of upcoming moves.
He warned that a weekly close below this level may indicate a possible change in the market's upward trend.
Reviewing some historical examples, Cowen highlighted how Bitcoin has been subjected to similar trading patterns in the past, with expectations for price movement characterized by slow rises followed by price corrections.
Finally, the video presented by the same analyst addressed the concept of logarithmic regression bands, stressing the importance of these indicators as tools for mapping price expectations and the need for caution in light of the expected fluctuations in the market.
A representative of BlackRock stated: The Ripple ETF is not among our current options
BlackRock, the world's leading asset management company, recently stated that it does not intend to launch a spot trading fund for Ripple (ETF).
This announcement came through joint reports by prominent financial journalist Charles Gasparino, who reported the news through the media, based on sources with direct knowledge of the case.
Gasparino explained that the regulatory uncertainty surrounding XRP was a major factor behind BlackRock’s decision.
In statements to Fox Business, he pointed to the complex legal situation of the Ripple case against the US Securities and Exchange Commission (SEC) as a major obstacle for major companies in the financial sector to get involved in ETF projects related to XRP.
According to the same spokesman, the ruling issued by Judge Torres places XRP in a regulatory gray area, where it is not clearly classified.
This legal complexity, coupled with the possibility of an appeal of the ruling, makes exploring XRP-based ETFs highly risky for financial entities.
Before BlackRock's statement, there was widespread speculation within the cryptocurrency community about the possibility of a Ripple ETF.
This speculation was partly fueled by a comment by Larry Fink, CEO of BlackRock, in an interview with Fox Business, where he gave a vague answer on the topic.
Interest in the idea of cryptocurrency ETFs also increased after the Securities and Exchange Commission approved Bitcoin ETFs, prompting many traders and analysts to be optimistic about the possibility of similar products emerging for currencies such as Ethereum and XRP.
Bitcoin miners dump 10,600 Bitcoins in 24 hours!
At the beginning of 2024, Bitcoin witnessed important developments with the introduction of spot ETFs in the US markets, a development that represents a qualitative shift in the integration of Bitcoin into the traditional financial system.
However, it seems that these developments were not enough to stabilize the confidence of miners, as recent data from CryptoQuant showed, and according to analyst Ali Martinez, miners sold a large amount of their holdings.
The data indicates that there was a noticeable increase in selling activities by miners, as approximately 10,600 Bitcoins, with an estimated value of approximately $455.8 million, were offloaded within 24 hours during the current week.
This increased selling activity is an indication of significant potential repercussions for the cryptocurrency market, as it could lead to increased pressure on the price of Bitcoin and trigger a sell-off.
Before the launch of the ETFs, approximately 50,000 Bitcoins, worth an approximate value of $2.3 billion, were offloaded to cryptocurrency trading platforms, which led to a sharp rise in the flow of miners and reached a 77-month high.
As these instruments began trading on January 11, the value of Bitcoin rose to $49,000, but it fell three days later to $41,750 on January 14. Since then, it has remained stable under $43,000, where it is currently trading at around $42,615, down 0.7%. At that day.
With the debut of ETFs and subsequent decline in prices, investors are now waiting for the next bullish catalyst expected in April this year, which could shake up the market.
Bitcoin mining activity reaches all-time high using renewable energy
Daniel Patten, an ESG analyst specializing in Bitcoin (BTC), published a report on January 18 based on data from the BEEST model and a comprehensive analysis of publicly available information.
The report reveals a significant increase in sustainable energy use in Bitcoin mining, reaching 54.5%, which is a 3.6% increase compared to last year.
This achievement highlights the progress that has been made in improving the environmental profile of Bitcoin mining over the past four years.
The report also highlights notable shifts in Bitcoin mining practices, especially regarding the use of methane emissions.
The report shows how some small oil producers in North America, especially in Canada and the United States, previously paid to burn natural gas or vented methane directly into the atmosphere.
The shift in mining strategies is evident, as some mining companies have begun using blown methane gas to generate electricity used in Bitcoin mining.
This approach mitigated environmental damage and enhanced the sustainability of Bitcoin mining operations.
The report notes that these strategies resulted in mitigating 7.3% of the Bitcoin network's total emissions without relying on offsets, a landmark achievement for the industry.
The article also highlighted the expansion of renewable off-grid mining activities, such as the Tether initiative through hydromining in Latin America and the discovery of more methane mining sites.
The geographical shift in mining activities is also an influential factor in improving the sustainability of this industry.
Following the ban in China and strict regulations in Kazakhstan, a large number of miners have moved to areas with greener energy grids in North America.
This, combined with the global trend towards greener networks at a rate of 0.7% per year, has led to a significant 29% improvement in the emissions intensity of Bitcoin miners compared to 2021.
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