Bitcoin

Bitcoin Price Drops To $27,600

04/24/2023
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Bitcoin price (BTC) is back below the $27,600 level after losing around 10% to the current price of $27,276. The pullback came as day traders kept hedging their positions to collect early profits. In the wake of this profit-taking, BTC’s price has lost key support levels (now turned resistance), and now bulls are looking for a possible catalyst to reverse Bitcoin’s fortunes.

WEF Recognized The Environmental Benefits Of Mining Manipulation

The World Economic Forum (WEF) displayed the facilities and technology that a crypto mining firm uses, implying its operations were the “biggest environmental winner’. Notably, however, the firm is not cited saying it was mining crypto.

In a video published on April 20, the WEF promoted efforts toward flaring reduction by Crusoe Energy Systems, a Colorado-based Bitcoin BTCUSD miner. Flaring defines how large quantities of gas from oil production of decomposition are wasted.

The video highlights reliable imagery of what seem to be crypto-mining facilities. Nevertheless, it never distinctively addressed what is taking place, an action that caught the attention of Kristine Cranley, a director at the Texas Blockchain Council advocacy group.

CEO and co-founder of Crusoe, Chase Lochmiller, explained in the video that it builds and operates “modular data centers” co-located with waste energy sources. Based on his explanation, this helps in using wasted methane streams for power generation.

Further, the Crusoe executive noted that this enables the production of “ultra-low-cost computing infrastructure.” It uses stranded energy sources that would otherwise go unused. The video captured the attention of multiple figures in the crypto arena, including MicroStrategy co-founder Michael Saylor who shared it with his 3 million followers on Twitter on Sunday.

One possible reason why the WEF never mentioned BTC is its recent post, including advocacy for changing Bitcoin’s code to proof-of-stake (PoS) due to the environmental impact of its current consensus mechanism.

Crusoe Widens Its Bitcoin Mining Assets

The Colorado-based miner expanded its Bitcoin mining assets late last year via its move to acquire the operating assets of Great American Mining (GAM) in October, a portable BTC mining operator. With this move, Crusoe added more than 10 megawatts (MW) to its mining output alongside around 4,000 application-specific integrated circuits (ASIC) crypto-mining rigs.

In another move to grow its mining capacity, Crusoe joined hands with the Omani government in June 2022, bolstering the country’s efforts to achieve zero gas flaring by 2030. Notably, Oman boasts exports of around 21% of its gas production.

With this partnership, Crusoe is set to establish an office in Muscat, the capital city of Oman, where it will install its equipment ready to capture gas waste at well sites. The gas waste will be used as computing power for its cryptocurrency mining activities.

Bitcoin Price Prediction: The Saving Grace For BTC To Reverse Its Fortunes

At the time of writing, the Bitcoin price of $27,289 sits on the support offered by the 50-day Simple Moving Average at $27,119. The support appears solid, given that it has prevented further losses for BTC for four consecutive days. For a change of fortune, Bullish momentum must increase around this level to prevent the bears from taking over.

The trend reversal is possible, considering the northbound move displayed by the 50-day SMA mentioned above and the 100- and 200-day SMAs at $25,030 and $21,467, which indicated the path with the least resistance was upward.

The three SMAs, presenting as supplier congestion points, also identified possible levels where more BTC bulls could join the bandwagon, solidifying an uptrend for the flagship crypto. If this happens, the increased buying pressure could see Bitcoin price shatter the immediate barricade around $28,764.

In highly ambitious cases, the king crypto could extend a neck into the $30,000 territory, with the most sensible move being a tag of the $30,553 resistance level. Such a move would denote an 11% upswing, marking a recouping of all losses made since mid-April when BTC recorded an intra-day high of $30,622.

 BTC/USD Daily Chart

Bitcoin price chart - April 24

Conversely, if profit-taking continues, investors can expect a further decline. It is worth mentioning that a decisive loss of the support provided by the 50-day SMA at $27,119 would be very concerning for the overall outlook of BTC.

If selling pressure escalates, Bitcoin price could drop toward the 100-day SMA at $25,030, where the possibility of an uptrend would be reduced significantly for the long term. Notably, this hurdle was first breached on March 17, 2023, after a drop-down in June 2022, an astounding nine months!

Judging from the Relative Strength Index (RSI) trajectory and the Moving Average Convergence Divergence (MACD), investors can expect a continued downtrend for the next few days before a possible pullback. The RSI price strength at 43 was also worrisome, and bulls would have much to do to reclaim control. Notably, bears were putting in a strong fight, which, if left unchecked, could deliver the MACD into the negative zone where bears dominate.

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Source: https://insidebitcoins.com/news/bitcoin-price-drops-to-27600-what-can-reverse-btcs-fortunes