Bitcoin updated its price to $83,800 yesterday but then made a strong rebound back to around $87,000, where it is currently trading. Ethereum also managed to recover some positions after a significant sell-off.
Meanwhile, it has been reported that the National Bank of Kazakhstan has formed a separate crypto reserve within its gold and foreign currency assets and plans to invest up to $300 million in crypto assets. Earlier, President Tokayev signed a law that substantially liberalizes mining and cryptocurrency transactions in Kazakhstan. According to this law, the mandatory requirement to sell mined cryptocurrency through the Astana International Financial Centre (AIFC) has been abolished, and the ban on the creation and transactions involving unbacked digital assets has been lifted. Now, cryptocurrency exchanges will be able to operate based on licenses obtained. Cryptocurrency mining is permitted for individual entrepreneurs and legal entities and is not classified as an activity related to organizing the circulation of digital assets.
This step by the National Bank of Kazakhstan is significant and underscores the growing recognition of cryptocurrencies as an important asset class. The formation of a crypto reserve, despite its relatively small volume of $300 million, indicates the country's strategic intent to integrate into the global crypto economy and leverage its potential to diversify gold and foreign currency assets.
The liberalization of legislation in the area of mining and cryptocurrency transactions creates favorable conditions for the development of this industry in Kazakhstan. The removal of the mandatory sale of mined cryptocurrency through the AIFC simplifies business operations for miners and enhances their competitiveness in the international market. The lifting of the ban on transactions involving unbacked digital assets broadens the range of available instruments for investors and stimulates innovation in decentralized finance.
Permitting cryptocurrency mining for individual entrepreneurs and legal entities, along with excluding this activity from the category of organizing the circulation of digital assets, significantly reduces administrative barriers and encourages investment inflows into Kazakhstan's mining industry. This allows the country to strengthen its position as one of the leaders in global mining and create new jobs.
The measures taken are expected to positively impact Kazakhstan's economy by attracting foreign investment, stimulating the development of the technology sector, and increasing tax revenues.
Trading recommendations:
Regarding the technical picture for Bitcoin, buyers are currently targeting a return to the $87,200 level, which opens a direct path to $89,600, and from there, it is only a short step to $92,000. The furthest target is around $95,500. Surpassing this level would indicate attempts at a return to a bull market. In case of a decline, buyers are expected at the $85,100 level. A drop below this area could quickly push BTC down to around $83,200, with the most distant target at $81,200.
For Ethereum, clear consolidation above the $2,845 level opens the way to $2,947. The furthest target is around $3,068. Breaking above this level would indicate a strengthening of bullish market sentiment and renewed buyer interest. If Ethereum declines, buyers are expected at the $2,732 level. A return below this area could swiftly bring ETH down to around $2,626, with the most distant support at $2,524.
What we see on the chart:
- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;
- Green lines indicate the 50-day moving average;
- Blue lines indicate the 100-day moving average;
- Light green lines indicate the 200-day moving average.
Typically, a crossover or price test of these moving averages either halts market momentum or sets a new directional impulse.
