10.06.202108:38 Forex Analysis & Reviews: Technical Analysis of BTC/USD for June 10, 2021

Crypto Industry News:

In Wednesday's tweet, Bukele said he instructed Mynor Gil, president of state-owned electricity company LaGeo, to make it easier for miners to mine BTC. So El Salvador will mine Bitcoin using "very cheap, 100% clean, 100% renewable, emission-free energy" from domestic volcanoes. The company operates the only two geothermal power plants in El Salvador, located in the Ahuachapan and Berlin regions. However, it plans to build two new facilities in San Vicente and Chinameca.

"I've just instructed the president of @LaGeoSV (our state-owned geothermal electric company), to put up a plan to offer facilities for #Bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos (...) "

More than half of the country's energy comes from renewable energy sources. The power of geothermal energy is over 200 megawatts. It is worth noting here that there are as many as 23 active volcanoes in El Salvador. However, reports suggest that El Salvador's geothermal energy potential is closer to 644 MW, meaning LaGeo currently uses around 31% of its available energy production. According to data from the Cambridge Bitcoin Electricity Consumption Index, Bitcoin consumes over 116.7 terawatt hours of electricity per year.

Technical Market Outlook:

The BTC/USD market still trades under the supply zone located between the levels of $43,1459 - $41,794, so bears are still in full control of the market and only a strong breakout above the level of $41,096 (38% Fibonacci retracement of the last wave down) would temporary change the outlook to bullish.The recent bounce from the level of $31,017 had broken the technical resistance located at the level of $34,834 already and the bulls are currently testing the trend line resistance around the level of $37,500. Any violation of this line would likely lead to another wave up towards the supply zone. On the other hand, the next target for bears is May 19th low seen at the level of $29,701 and the first attempt to test this level had been made as the bears had pushed the price below the $33,000 towards the technical support at $32,156 (May 23rd low).

Weekly Pivot Points:

WR3 - $43,458

WR2 - $41,521

WR1 - $38,273

Weekly Pivot - $36,222

WS1 - $33,131

WS2 - $30,800

WS3 - $27,577

Trading Recommendations:

Even despite the recent correction 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. Any correction or local pull-back should be used to open the buy orders. 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).