Crypto Industry News:
The past year can definitely be classified as unsuccessful for bitcoin. The negative effects of the onset of the cryptocurrency winter were also strongly felt by miners extracting the first cryptocurrency. Industry analysts predict that many people from the BTC mining market will join forces to reduce the individual costs of their activities.
Analysts from the Hash Rate Index - Jaran Mellerud and Colin Harper - hypothesized that if the situation on the bitcoin market does not start to improve, people dealing with this asset will be forced to join forces with other companies.
On the site's blog on January 3, a post was published called "10 bitcoin mining forecasts for 2023." Its creators point out that public BTC miners have to face certain reporting requirements. This includes activities such as annual reports, the cost of which is very high.
After bitcoin mining profits fell by 90% in 2022, public miners have significantly reduced their administrative costs on more than one occasion. To this end, they went private or merged with other entities to share the costs.
Moreover, the post published on the Hash Rate Index also assumes that 2023 will be marked by a massive restructuring in the Bitcoin mining industry. Analysts have no doubts that strengthening miners' balance sheets will be their top priority in 2023. In addition, it was pointed out that the level of liabilities incurred by some miners would force them to restructure their debt as the only solution to their financial problems. This may mean attempts to negotiate lower interest rates or extend the period for repayment of loans taken out, as the authors assume.
Technical Market Outlook:
The BTC/USD pair had keeps trading above 100 MA, nevertheless the recent rally had been capped at $17,000 after the Bearish Engulfing candlestick pattern was made at H4 time frame chart. A breakout above the level of $17,057 is needed in order to extend the rally towards the key short-term technical resistance seen at $18,360, but for now the bulls are still trading below the level of $16,950. On the other hand, any breakout below the range low would extend the corrective cycle towards the level of $15,984 (November 28th low). Strong and positive momentum support the short-term bullish outlook.
Weekly Pivot Points:
WR3 - $17,051
WR2 - $16,841
WR1 - $16,758
Weekly Pivot - $16,662
WS1 - $16,548
WS2 - $16,422
WS3 - $16,213
Read next: Samsung Suffers From Weakening Demand, Amazon Will Increase The Total Number Of Layoffs To Over 18,000| FXMAG.COM
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames continues without any indication of a possible trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. Moreover, there is a clear test of the 50 WMA located at the level of $15,600, so any breakout below the moving average and a weekly candle close below moving average will be considered as another indication of the down trend continuation. The new yearly low was made at $15,555 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout in the longer term.
Relevance up to 10:00 2023-01-06 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Read more: https://www.instaforex.eu/forex_analysis/307482
