Bitcoin Price Selling Pressures Absorbed At 9,200 Support
Bitcoin price retreat today after yesterday rejected at the $10,000 mark. The positive bitcoin momentum accelerated after Monday’s bitcoin halving event. The number one cryptocurrency approached the strong support at the 100-day moving average. From Monday on, the reward for mining each block on the Bitcoin network has reduced by half, from 12.5 to 6.25, for the third time in history.
Norway Supports Bitcoin Mining
Norway’s government will reintroduce a “reduced electricity tax” for cryptocurrency mining operations in the country at the 2020 budget. The plan involves a reduction of the electricity tax for crypto miners from NOK0.1658 per kWh currently to NOK 0.0048 per kWh.
Meanwhile, the Ukrainian government confirmed the plans to provide nuclear energy to cryptocurrency miners as the idea has won the support of the cabinet, and the prime minister. The energy ministry confirmed that the cabinet would create a task force to explore the plan’s legal and practical feasibility.
A new bitcoin product has introduced by FTX derivatives platform, the first Bitcoin hash rate futures or “hash rate futures.” The futures contract will track the average difficulty of the Bitcoin network each day from the start to the end of each quarter. FTX notes that is used the difficulty and not the hash rate because it is almost impossible to calculate the hash rate accurately. The Bitcoin mining difficulty is how complex it is to solve the equations, which validate the Bitcoin transactions.
Bitcoin price is 1.64% lower at $9,632 as the price stops a three-day winning streak. Bitcoin price rejected for the third time at the $10,000 mark and attracted some sellers that pushed the price in early Asian session down to $9,215. The bullish momentum is intact as at the time of writing BTCUSD managed to bounce form daily lows and now is 2.07% lower at $9,596.
On the downside, initial support for Bitcoin stands at $9,215 the daily low. The next level to watch for Bitcoin in case of further selling pressure is at $8,834 the low from May 13 trading session. The low from May 11 at $8,180 is the next support zone.
On the flip side, first resistance stands at $9,844 the daily high. The next strong resistance for BTCUSD will be met at $9,941 the high from yesterday. In case of a break higher, then the bulls will be looking for an extension above 10,073 the high from May 7.