Bitcoin prices are racing higher, building on gains posted on September 7. In the last 24 hours, BTC is up approximately six percent versus the USDT. Nonetheless, sellers are still dominant based on the BTCUSDT candlestick arrangement in the daily chart.
Currently, BTC is still within a bear breakout formation. For buyers to take over, there must be a close above the wide-ranging bear candlestick of September 6. If not, BTC prices will remain bearish from an effort versus result perspective. This preview will hold as long as prices are below $20.7k, and the leg up is with lighter trading volumes.
White House urged to Ban Bitcoin Mining
Although Bitcoin’s fundamentals are strong, a barrage of regulatory-related news from the U.S. could slow down the uptrend. In the latest White House report on crypto assets, analysts observed that the network is putting a strain on the country’s energy sources.
As a proof of work system anchored by distributed and decentralized miners, Bitcoin demands energy to power rigs and keep the network immutable. However, if the White House follows the recommendation made by the authors of the report, it could result in the ban of proof of work systems and Bitcoin mining.
This could be a severe blow to Bitcoin and may force a drastic action by the community to intervene, possibly following Ethereum. The U.S. is home to the largest concentration of Bitcoin and crypto miners after China banned the activity in mid-2021.
Bitcoin Price Analysis
Bitcoin is within a bear breakout formation below $20.7k. Despite gains of early today, traders may find unloading opportunities the upper limit of last week’s trading range. Even so, this forecast holds true if BTCU prices are held within the September 6 wide-ranging bear candlestick by today’s close. Besides, the current surge is with low participation levels, questioning the strength of the leg up. If there’s a pullback to below $20k, this rally may turn out to be a fake break out, or, a dead cat bounce.
Conservative BTC traders seeking to align with the primary trend established on August 19 can wait for a break below $19k, or the 78.6 percent Fibonacci retracement level of the June to August 2022 trade range, before unloading with targets at $17.5k.
Any surge above $20.7k with rising trading volumes will nullify this bearish call, rejuvenating BTC bulls in a leg up that may see the coin rise to $23.5k.
Technical charts courtesy of Trading View.
Disclaimer: Opinions expressed are not investment advice. Do your research.
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