Last Wednesday, Iran’s President Hassan Rouhani announced a ban on cryptocurrency mining in the country. The announcement came after several cities had experienced blackouts. The government blamed the Bitcoin miners in the country for the power outages. The crypto mining ban is supposed to continue until the end of September.
It is worth mentioning that a couple of weeks ago, China also called for a crackdown on crypto miners.
Nevertheless, the cryptocurrency community remains positive and is not afraid of Bitcoin mining bans in China and Iran because a process of shifting mining capacity from China to North America and Europe is starting:
Moreover, some of the most prominent cryptocurrency whales, such as MicroStrategy’s founder Michael Saylor and Tesla’s CEO Elon Musk, will facilitate the Bitcoin mining capacity relocation and even make the mining environmentally friendly. Earlier last week, Saylor announced that together with Musk, they’d hosted a meeting with the leading Bitcoin miners in North America on solving some mining-related issues:
Last week the crypto market was struggling to find direction. The current week starts with some indecision as well. Most of the major cryptocurrencies continue to move sideways. According to Coin360.com, one Bitcoin costs €29,239.39 (-1.05%), one Ethereum — €1,994.51 (-0.75%), one DOGE — €0.2495 (-1.44%), and one UNI — €20.83 (-0.03%):
Source: Coin360.com (Daily crypto market performance)
Now let us analyze the price charts of the leading cryptocurrencies against the euro in the most noteworthy time frames.
In the weekly chart (1W), last week BTC/EUR formed a small candlestick similar to a Shooting Star:
Interestingly, this small candlestick formed in the range of the consolidation registered during the first couple of months of the year. Therefore, we can conclude that at the moment, BTC/EUR is taking a break from the current correction and probably will consolidate for some time.
Another signal pointing to consolidation is that in the 30-minute chart (30M), BTC/EUR has exited the downtrend and is trying to form an Ascending channel:
If BTC/EUR succeeds to remain in the trajectory of the potential Ascending channel, then in the heavier time frames, we may see a longer consolidation at the current price levels.
In the daily chart (1D), ETH/EUR continues to move forward within the Ascending channel (uptrend):
As can be seen from the chart, right now, the price is consolidating at the 90-day Moving Average (MA 90) and the lower line of the channel (trend line).
In our opinion, if the price rebounds from the trend line, many traders will open long positions to try to catch the next wave within the channel. Theoretically, in such a trade, the stop-loss has to be below the trend line and the take-profit could be set near the upper line of the channel.
The pressure on the price of Dogecoin continues. In the 4-hour chart, DOGE/EUR is heading towards the 90-day Moving Average:
However, we expect Dogecoin to receive support at the level of the 90-day Moving Average and the level of the previous local low. If the price of the cryptocurrency rebounds from this level, then some aggressive (risk-tolerant) traders may open long positions to try to catch a price rebound from the 90-day MA (approximately €0.19) to the 30-day MA (approximately €0.37).
In the daily chart (1D) of UNI/EUR, the 30-day Moving Average (MA 30) is going to cross the 90-day Moving Average (MA 90) — Moving Average Crossover:
Theoretically, the Moving Average Crossover is a common trend reversal signal. In our case, it may indicate that the bearish pressure on the price of Uniswap may continue, and we may witness further price decline. That is why for now, we prefer to stay away from this cryptocurrency pair until some bullish signals appear.
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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex’s content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.