Crypto Industry News:
Cryptocurrency mining companies in Kyrgyzstan will have to pay a higher price for the electricity they need to mine digital currencies. The increase follows the government's decision to update electricity rates in order to "ensure a stable and reliable operation of the energy sector".
According to the official announcement, the changes are part of the medium-term electricity tariff policy (2021-2025), approved by the Council of Ministers. "Mining Entities (Cryptocurrency)" is one of the 14 end-user groups affected by the change. The base rate for consumers in this category is calculated using a multiplier of 2.0 as detailed in published documents.
Cryptocurrency miners will pay 2.52 Kyrgyz som (less than $ 0.03) for every kilowatt-hour of electricity consumed. For the remaining four years of the period covered by the new tariff policy, prices will be adjusted each year to the average level of annual inflation.
Authorities in Kyrgyzstan have listed cryptocurrency mining farms alongside gold mining companies and alcoholic beverage producers as consumers requiring substantial energy supplies. The revised tariffs for these users take into account the additional operating costs of domestic thermal power plants, as well as distribution costs, the government explained.
The Central Asian region, where the Kyrgyz Republic is located, has become a popular cryptocurrency mining site that attracts miners with low electricity rates.
In August 2020, the Ministry of Economy presented a draft act on the taxation of cryptocurrency mining. The bill proposes a 15% tax on the cost of electricity used to mine digital currencies. The legislation requires mining companies to apply for registration in order to operate legally in the country.
Technical Market Outlook:
The BTC/USD pair has made a new local high at the level of $49,741 (at the time of writing the article) and is clearly heading towards the level of $50,000 and then towards $50,450 (technical resistance). The key short-term technical support is located at the level of $48,775. Please notice, that the bulls had violated all of the Fibonacci retracement levels already and the recent move up might be the beginning of the impulsive wave progression.
Weekly Pivot Points:
WR3 - $61,007
WR2 - $54,857
WR1 - $52,632
Weekly Pivot - $42,280
WS1 - $43,798
WS2 - $38,065
WS3 - $35,092
Trading Outlook:
According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $59,506. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).
