Domestic mining future uncertain, market stabilizes gradually after shocks

The overall rebound in the market, the trend of shock adjustment to build momentum.

On May 18, three major associations, the China Internet Finance Association, the China Banking Association and the China Payment Clearing Association, jointly issued an announcement requiring financial institutions and payment institutions not to carry out business related to virtual currencies. This was followed by a heavy voice from the State Council’s Financial Committee to crack down on bitcoin mining and trading practices. Subsequently, bitcoin and other crypto coin quotes dived sharply and the market fluctuated dramatically. In fact, not only did China signal strict regulation of bitcoin, but the European central bank, the Federal Reserve, the Bank of Canada or the Treasury Department also issued policies to strengthen regulation of bitcoin, showing a “siege” trend. The first is money laundering fraud, the second is the huge amount of resources consumed in mining and trading and the “carbon dioxide peak “The third is that it has actually interfered with the normal development of the financial market by its property of surging and falling in the financial market. However, the main reason for the recent central bank “siege” of bitcoin is that its market liquidity has exceeded the liquidity of many countries’ fiat currencies. “Some analysts say that Bitcoin’s market liquidity was ranked 6th in the world in October 2020 and has even shot up to 3rd since then. There is a very famous area in digital currency called the digital currency area, and there is a very important theory in the digital currency area that the volume of transactions is one of the important factors in determining the status of this world’s reserve currency. If you think about it according to this theory, in November 2020 Bitcoin would no longer be challenging energy, no longer challenging money laundering, and no longer challenging plummeting spikes, but directly challenging the world’s fiat currencies. In March of this year, for example, the Federal Reserve publicly acknowledged for the first time that bitcoin was challenging the dollar.” There is a core conceptual difference between digital currencies and crypto-digital coins. That is that Bitcoin and crypto-digital coins have a de-nationalized, decentralized philosophy, which is a manifestation of their anarchism. Based on this fundamental difference, the cryptocurrency digital coin is a complete departure from our nationalized, centralized currency and the digital currency now being issued. It is also here that they both have irreconcilable contradictions, and central banks are reluctant to recognize Bitcoin as a currency, or digital currency.

On May 27, the National Energy Administration’s Sichuan Supervision Office issued a notice that it will hold a research forum on virtual currency “mining” on June 2, which will include the State Grid Sichuan Electric Power Company and Sichuan Energy Investment Group reporting on virtual currency “mining” in their respective supply areas. “situation and related recommendations and shutdown virtual currency “mining” on the impact of this year’s Sichuan abandoned hydropower analysis; and Sichuan power trading center to report hydropower consumption demonstration area within the big data enterprises to participate in market transactions and related recommendations; and power sales company to report the agent big data enterprises to participate in market transactions and related recommendations. market transactions and related recommendations. On May 25, the Inner Mongolia Development and Reform Commission released the “Inner Mongolia Autonomous Region Development and Reform Commission on resolutely combating and punishing virtual currency “mining” behavior eight measures (draft for comment)”, said to further clean up the virtual currency “mining” behavior. Strengthen the crackdown and discipline, build a long-term regulatory mechanism, maintain market order, big data industry environment and prevent financial risks. The policy provisions are also more detailed, which even involves the mining of Internet cafes, into the blacklist of untrustworthy and other previously unprecedented content. Sichuan, as China’s largest bitcoin mining province, can account for more than 50% of the country’s electricity consumption during the water harvesting period. The notice issued by the regulatory office, the specific regulation will also be approaching, finally to Inner Mongolia like a comprehensive cleanup of virtual currency “mining” behavior, or according to their own situation to develop the corresponding consumption policy? The “Sword of Damocles” over the domestic mining industry is hanging again.

BTC-Quote Watch

From the four-hour chart, BTC gradually stabilized after continuous decline over the weekend, and the rebound broke the resistance of the upper rail of the downward channel and then the market turned more. From the plate, there is a chance to complete the action to confirm the below support by stepping back on the counter-pressure line during the day, the market oscillation upward to maintain the overall rebound pattern. Concerned about the chart level resistance 37300 and 42000 rebound pressure position. The lower side is concerned about 34000 near.

Domestic mining future uncertain, market stabilizes gradually after shocks

From the 30-minute chart, the BTC shock downward fall back to the center of gravity one by one, the short term bias short. From the plate to see the recent rebound near 36200 pressure, short-term market upward momentum, the market shock adjustment. Concerned about the chart 36200 resistance position. The lower support is near 35000.

Domestic mining future uncertain, market stabilizes gradually after shocks

ETH-Quote Watch

From the four-hour chart, ETH rebounded after a sharp decline over the weekend, the market rebounded strongly to break the upper rail of the downward channel after the market turned more, the overall trend of oscillation adjustment to build momentum. The main concern above the horizontal resistance suppression 2600 a line, the bottom concern 2300 and 2200 two line position.

Domestic mining future uncertain, market stabilizes gradually after shocks

From the 30-minute chart, ETH high shock fall, the overall pressure near 2460. From the disk to see the morning trend extended channel oscillation downward, intraday attention to the lower support 2320 position, here if broken then the next defensive position in the previous low near 2200. The upper rail resistance in the chart is located near 2440

Domestic mining future uncertain, market stabilizes gradually after shocks

LTC-Quote Watch

From the four-hour chart, LTC continues to rebound after bottoming out this week, breaking the downward channel after the market turns long. The plate looks to fall back to adjust to test the counter-pressure line support position. Intraday attention to the upper resistance of 190 near the suppression. The lower support concern 165 and 155 two line position

Domestic mining future uncertain, market stabilizes gradually after shocks

From the 30-minute chart, LTC showed a shaking downward trend in the morning. The plate looks like the trend is pressured by the channel upper rail resistance oscillation back down short term trend is short. Intraday attention to the upper resistance near 173 suppression. Lower support concern 165 position

Domestic mining future uncertain, market stabilizes gradually after shocks

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