FX.co ★ Technical Analysis of BTC/USD for May 31, 2022

Technical Analysis of BTC/USD for May 31, 2022

Crypto Industry News:

Cryptocurrency miners account for more than 2% of the total volume of electricity consumed in the Russian Federation, and their activities must be "whitewashed" and regulated, said Russia's deputy minister of industry and trade, Vasily Szpak. Speaking at a forum organized by the ruling United Russia party, Szpak explained:

"This is more than the cost of electricity for agriculture. In this sense, we cannot fail to consider mining as an industry," he says.

Cryptocurrency mining is now in a "gray area", is not taxed in any way and poses a risk to those involved, a government official noted during an event dedicated to the development of Blockchain technology and the regulation of digital financial assets. Szpak is convinced that the industry can be brought out of the shadows and made transparent for the state.

The deputy minister expects that in the future the amount of electricity allocated to mining will decrease as the industry switches to less energy-consuming protocols. Nevertheless, it is clear that cryptocurrency mines will continue to use energy, he said.

"Our position is completely unambiguous - mining must be recognized, regulated and established as an industrial activity" - he emphasized.

Bitcoin mining is one of the key cryptocurrency-related activities currently being legalized by the Russian authorities, despite the Bank of Russia's call to ban them altogether. However, the bill that was supposed to lead to this was submitted to the Russian parliament at the end of April. The bill was recently revised and the legislator withdrew the proposal to introduce an annual tax and customs amnesty for mining entities.

Technical Market Outlook:

The BTC/USD pair has been seen moving up towards the jey short-term supply zone located between the levels of $32,380 - $32,892. Only a sustained breakout above this zone would change the outlook to more bullish in the short-term, because the market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend is intact. The first indication of the deeper correction would be a clear breakout above the range high located at the level of $32,870.

Weekly Pivot Points:

WR3 - $33,360

WR2 - $32,016

WR1 - $30,581

Weekly Pivot - $29,009

WS1 - $27,632

WS2 - $25,903

WS3 - $24,538

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.

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Technical Analysis of BTC/USD for May 31, 2022

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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