FX.co ★ Technical Analysis of BTC/USD for June 6, 2022

Crypto Industry News:

Kenyan energy company KenGen says 86% of its energy is produced from renewable sources, mostly geothermal, from the thermal pockets of land in the Great Rift Valley. KenGen owns space in its new industrial park in Olcaria, close to its flagship geothermal power plant, which can be leased to Bitcoin miners.

Peketsa Mwangi, acting director of geothermal development at KenGen, said his company was interested in making Kenya home to BTC miners.

Despite his enthusiasm, there have yet been no reports of miners wishing to go to Kenya. The Cambridge's Bitcoin Electricity Consumption Index (CBECI) suggests that there are currently no known bitcoin mining operations in the East African country, however it appears to be an ideal solution for miners due to the region's estimated potential of 10,000 megawatts (MW) of geothermal energy.

KenGen is currently operating at maximum capacity of 863 MW following the commissioning of another geothermal power plant in April, according to Kenyan financial site Capital FM.

By inviting miners to the country, KenGen can achieve several goals simultaneously. Namely, it can increase the environmental sustainability of miners, which is under great control around the world. According to CBECI, mining uses 119.5 terawatt hours (TWh) per year, more than in the whole of the Netherlands. Globally, only 31 countries use more energy.

It may also drive demand for further expansion of the KenGen Grid to increase total supply and lower costs. Kenya currently has the 12th most expensive electricity in the world, with one kilowatt hour (KWh) costing around $ 0.22.

The Kenyan government could also enjoy greater revenues thanks to the miners' fees or even taxes. For example, the government of Kazakhstan may earn as much as $ 1.5 billion in revenues from miners in the next five years, even though it only raised $ 1.5 million in the first quarter of 2022.

Kenya enjoys a particularly high rate of cryptocurrency adoption based on peer-to-peer transaction volume.

Technical Market Outlook:

The BTC/USD pair has been continuing the whipsaw trade conditions, full of fake-outs and blow-outs. The market participants has still not decided whether the down trend should be continued or terminated and keep trading in a narrow range between the levels of $32,892 - $28,741. The first indication of the deeper correction would be a clear breakout above the range high located at the level of $32,892, however all the current attempts to rally are being faded and the Pin Bar candlesticks inside the range zone are present already.

Weekly Pivot Points:

WR3 - $34,666

WR2 - $33,580

WR1 - $31,452

Weekly Pivot - $30,233

WS1 - $28,222

WS2 - $27,019

WS3 - $24,877

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues. 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 is seen at the round psychological level of $20,000.