Crypto Industry News:

A high-ranking representative of the management of Butyrskaya prison in the Tverskoy district in the center of Moscow is under investigation for the establishment of a cryptocurrency mining farm. The prison, also known as Butyrka, is the oldest prison in Russia, built as early as 1771.

Cryptocurrency mining equipment was found on the grounds of a psychiatric clinic run by the Federal Correctional Service in a prison. The Investigative Committee of the Russian Federation is currently checking one of the deputy chiefs for possible abuse of power, the economic daily Kommersant reported this week.

Investigators have so far established that the official, together with his as yet unidentified partners, installed mining equipment in November 2021. The platforms were active until February this year.

During this period, the machines consumed nearly 8,400 kW of government-paid electricity for a total cost of nearly $ 1,000. The deputy chiefs are accused of "actions that clearly go beyond his competences, and thus significantly violate the legally protected interests of society or the state".

Cryptocurrency mining with subsidized and sometimes stolen electricity has become an attractive source of additional income for many Russians. Regions such as Krasnoyarsk Krai and Irkutsk Oblast, which historically kept low electricity rates for the population and public institutions, have become hotspots for illegal activities.

Illegal miners have been blamed for frequent breakdowns and power outages, especially in residential areas where electrical networks are unable to support such heavy loads. To deal with this, the Russian antitrust agency recently proposed higher electricity rates for home cryptocurrency miners.

Technical Market Outlook:

The BTC/USD bulls keep trying to bounce higher and so far successfully bounced from the range lower level seen at $28,980 again. The local high was made at the level of $31,190, but bulls are not that keen to continue the bounce anymore as the move up had ended with a Pin Bar candlestick formation. The weak and negative momentum supports the short-term bearish outlook with a new target for bears seen even at the level of $20,000. The market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend is intact. The first indication of the deeper correction would be a clear breakout above the range high located at the level of $32,870.

Weekly Pivot Points:

WR3 - $33,847

WR2 - $32,649

WR1 - $31,169

Weekly Pivot - $29,902

WS1 - $28,296

WS2 - $27,028

WS3 - $25,668

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support is seen at the round psychological level of $20,000.