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After the European Union rejected the Proof of Work-based cryptocurrency ban, regulators are now focusing on finding a way to make digital assets more environmentally sustainable in the near future.
On 18 October, the European Union published a package of reports on the Action Plan for the implementation of the European Green Deal and the REPowerEU Plan. The aforementioned projects are aimed at introducing an economical energy consumption system through the digitization of this sector. The European energy specialist turned their attention towards the cryptocurrency market. The REPowerEU plan was presented in May this year as a response to the Russian invasion of Ukraine. The attack by the Russians on our neighbor caused major difficulties on the European energy market.
"The resulting crisis was one of the factors to" rapidly accelerate the clean transformation "- the European Commission said. - "Controlling energy consumption in the ICT sector" is a key element of this plan, which involves the use of blockchain technology in the energy market.
The "Commission Staff Working Document" emphasizes that 10% of the world's cryptocurrency mining takes place in Europe. Germany and Ireland are on the European podium, and Sweden has recently recorded a significant leap in mining activity, after China led to an exodus of miners with its ban. We learn from the report that the European Securities and Markets Authority is working on developing special technical standards for the cryptocurrency mining industry.
The authors of the document refer to a report prepared by the think tank European Blockchain Observatory and Forum (EUBOF), which discussed "potential policy options that may be justified to mitigate the negative impact on the climate of technologies used in the crypto asset market." The EU has announced that a specialist report on the environmental impact of digital assets will be prepared by 2025. If an institution decides to take certain steps on the EUBOF's recommendations, it will mean: "the world's first attempt to reduce the attractiveness of bitcoin investments and reduce the price of bitcoin."
The BTC/USD pair bounce had been rejected from the trend line resistance seen around the level of $19,600 and is heading lower. There is still missing one more wave to the downside in order to complete the Falling Wedge pattern. The supply zone located between the levels of $20,221 - $20,580 (marked as a red rectangle) is very important for bulls from a technical point of view, because only a sustained breakout above it would change the outlook to more bullish, so please keep an eye on this zone for a possible breakout towards the next target seen at $22,410. The momentum remains positive, which supports the short-term bullish outlook for BTC. The nearest technical support is seen at $18,938 and $18,854. The swing low and range low is seen at the level of $18,150.
WR3 - $19,510
WR2 - $19,356
WR1 - $19,287
Weekly Pivot - $19,202
WS1 - $19,133
WS2 - $19,048
WS3 - $18,894
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. The key long term technical support at the psychological level of $20,000 had been violated, the new swing low was made at $17,600 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.
Relevance up to 08:00 2022-10-20 UTC+00 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.
