Bitcoin: Gazprom starts mining BTC


Investing.com – Bitcoin posted small gains on Tuesday morning after briefly dipping back below $20,000 last night. In the afternoon, it hit a high of $21,000.

The $20,000 support zone had given way on Saturday and a new cycle low had occurred below $18,000.

From a fundamental perspective, it can be said that bitcoin’s upside potential is limited by the general risk aversion in the markets. Investors prefer to steer clear of risky assets like cryptocurrencies.

Investors continue to fear high inflation, geopolitical unrest and the prospect of a global recession.

Yesterday, however, there was good news: the CEO of the Hong Kong-based cryptocurrency exchange Hoo.com tweeted that his company would unblock payments for certain tokens. On Sunday, he announced in a blog post that payments would be delayed for 24 to 72 hours.

This, however, was not enough to instill enough optimism in the market to give bitcoin further momentum. On the other hand, Celsius Network has warned that it will be some time before payments are possible again.

The subsidiary of the Russian Gazprom giant, Gazpromneft, has entered into a partnership with the bitcoin mining company BitRiver. At the company’s oil fields, the unused methane gas, which so far has only been flared, is to be used to generate electricity for the mining rigs.

The miner thus defuses one of the main cost factors, the price of electricity. So far, BitRiver operates data centers with a capacity of 300 megawatts. BitRiver CEO Igor Runets explains:

“During the next two years, BitRiver intends to carry out projects to create its own computing centers for power-intensive mining with power up to 2 gigawatts. This also includes oil gas, which meets the stable and high electricity consumption”.

Bitcoin: price technical benchmarks

Bitcoin recorded a gain of 5.53% with a price of 21.166 dollars.

A doji formed yesterday on the daily chart, indicating market participants’ indecision. Currently, the price is heading towards the resistance of the 138.2 percent Fibo expansion of $21,335.

If it manages to break through it on the day’s close, expect an extension of the upside move towards the 123.6 percent Fibo extension of $23,309.

Otherwise, there could be a rebound and a test of the psychological level at $20,000 and the 150 percent Fibo extension at $19,739.

By Marco Oehrl



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