Crypto Industry Outlook:
China is pushing its own state-owned enterprises to stop mining cryptocurrencies, and the government is considering severe penalties for companies that continue to operate, including higher energy spending.
According to reports, Meng Wei, a spokesman for the National Development and Reform Commission (NDRC), said in a press conference that as China's chief economic planner, the NDRC intends to regulate industrial-scale Bitcoin mining and any involvement of state-owned enterprises in the activity. The NDRC, which is responsible for shaping mining policy, reportedly recently held a special session on the subject. It has also increased pressure on provinces and municipalities to investigate and shut down state-owned mining.
The Chinese government took a tough stance on Bitcoin miners in 2021, blaming them for everything from energy waste to fatal accidents in coal mining as the country strives to meet its carbon neutrality goals.
According to sources, the escalation of crackdown on miners in September was due to concerns over the country's energy supply for the winter season, one of the reasons why authorities reportedly attacked those who tried to impersonate data scientists and data warehouses to continue mining digital assets.
Recent pressure from the Chinese government on cryptocurrencies has forced the burgeoning cryptocurrency industry, including Bitcoin mines and exchanges, to relocate to countries with friendlier regulations.
Technical Market Outlook
The BTC/USD pair might had terminated the ABC corrective cycle at the level of $58,325 and is trying to bounce towards the technical resistance seen at the level of $62,188. The next big target for BTC is seen at $70,000, but the first target for the wave 5 is located at $70,508. Nevertheless, the wave 5 might had been terminated at the level of $68,987 already and now the market is developing the corrective cycle. The momentum is weak and negative, which supports the short-term bearish outlook for BTC. The nearest technical support is seen at the level of $57,740.
Weekly Pivot Points:
WR3 - $74,186
WR2 - $71,563
WR1 - $67,476
Weekly Pivot - $68,414
WS1 - $60,726
WS2 - $58,026
WS3 - $54,090
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. This scenario is valid as long as the level of $52,943 is clearly broken on the daily time frame chart (daily candle close below $52,000).
