The recent drop in Bitcoin prices could be due to Turkey’s announcement that it will regulate Bitcoin. The Turkish Lira is currently experiencing its worst depreciation, and the laws of the country have opted to limit the growth of the crypto business. President Recep Tayyip Erdogan has promised that the Turkish government will provide savers with guarantees.
Furthermore, the Turkish government has penalized Binance, a Japanese-based cryptocurrency exchange with offices in the United States and several other countries worldwide. Erdogan’s government imposed a fine of 8 million Lira ($750,000) on Binance, for allegedly violating the regulations of the country.
According to the Turkish newspaper NTV, President Erdogan’s cabinet has already drawn up a law to regulate Bitcoin and other cryptocurrencies. Erdogan has stated that he will bring the bill before parliament for ratification as soon as possible. Over the last decade, the Turkish Lira has lost nearly 85 percent of its value, and Turkey is now attempting to refloat its currency. Turkish citizens have begun to use Bitcoin as a hedge against inflation, in an effort to insulate themselves from the financial crisis. As a result, Erdogan has declared war on Bitcoin, and his latest Bitcoin restriction put downward pressure on BTC/USD Tuesday.
Furthermore, the latest order given by Iranian authorities to local cryptocurrency miners, to temporarily cease their operations during the winter months, due to electricity shortages, has contributed to the decline in the Bitcoin prices. Iranian authorities implemented similar actions for the second time this year, after having done the same thing in May and September.
The Iranian authorities temporarily banned Bitcoin and cryptocurrency mining after being accused of power outages at the end of May. Energy consumption reached a new high during the winter season, prompting the local Ministry of Energy to order miners to halt their operations for the time being. This news sent Bitcoin down even further on Tuesday, adding to the losses in the top cryptocurrency.
Support Resistance
4,6358.6 4,9729.6
4,5163.3 5,1905.3
4,2987.6 5,3100.6
Pivot Point: 4,8534.3
Trading in Bitcoin is bearish, at the 47,819 level, and it is gaining immediate support at the 47,000 level. A break below this level would expose the BTC/USD price to the 45,800 level. On the bullish side, immediate resistance for Bitcoin remains at 48,114. A breakout at 48,115 would expose Bitcoin to levels of 49,950 and 51,745. The RSI and Stoch RSI are signalling a selling bias, therefore, we should consider looking for sell trades under 47,000 and vice versa. Good luck!
