- Major cryptocurrencies suffered heavy losses on Saturday, Bitcoin dropped below $10,000.
- IRS has reportedly started sending out letters to more than 10,000 crypto investors.
- Both Ethereum and Bitcoin are trading near key levels according to Confluence Detector.
Following the news of the US Internal Revenue Services (IRS) having started to send out letters to more than 10,000 cryptocurrency investors to potentially penalise them over failure to properly report income forced the crypto market sentiment to turn sour this weekend.
Top-20 cryptocurrencies with regard to total market capitalization suffered heavy losses on Saturday and stayed relatively quiet on Monday as investors have taken a back seat while waiting for the next catalyst. In the meantime, this weekend saw more than $15 billion erased from the total market capitalization, which now stands at $264 billion according to the latest available data on CoinMarketCap.
Earlier this week, during an interview with CNBC, the United States Treasury Secretary, Steven Mnuchin, said that they were looking at all of the crypto assets and added that they will make sure to have a unified approach among regulators when introducing new rules and guidelines with an aim to mitigate the potential negative impact on the financial system. Commenting on Bitcoin as an investment tool, “I won’t be talking about Bitcoin in ten years, I can assure you that,” Mnuchin said. “I can assure will not be personally loaded up on Bitcoin.”
Now let’s take a look at the technical picture and identify the key technical levels revealed by the Confluence Detector for the top 3 cryptocurrencies.
BTC/USD seems to have found support near $9,500
After breaking below the key $9,900 area, Bitcoin extended its slide but seems to have found support at the $9,500 area, where the previous weekly low, middle-line of the 15-minute Bollinger Band and the previous 1-h low is located.
Below that level, the BTC/USD pair doesn’t seem to have any interim support levels until the strong $9,300 region that is reinforced by the 1-week Pivot Point (S1) and the previous daily low.
On the upside, the Fibonacci 61.8% retracement of the monthly price action seems to have formed a key resistance at $9,900. Ahead of that, the Fibonacci 23.6% retracement of the weekly price action at $9,820 could be seen as a hurdle.
ETH/USD trades near critical $208 support
Ethereum trades a tad above the critical $208 support, which is formed by the Fibonacci 23.6% retracement level of both the weekly and daily price action, previous lows on both the H4 and H1 charts as well as the middle line of the hourly Bollinger Band, and could come under a renewed bearish pressure if it makes a daily close below that level. The next target on the south is located at $187 – 200-day moving average.
On the flip side, monthly pivot point (S1) at $223 is a key resistance ahead of $227, where the 100 period SMA on the H4 chart and the previous monthly low is located.
XRP/USD sits in between strong support and resistance levels
Ripple has pierced through a couple of key resistances and could test $0.3054 – the 1-week Pivot Point (S1), next. Below that level, next strong support aligns at $0.3026 – previous weekly low.
The XRP/USD pair’s upside seems more crowded, suggesting that a recovery attempt is likely to encounter strong obstacles. The Fibonacci 23.6% retracement of the weekly price action is located at $0.3110, guarding the Fibonacci 38.2% retracement of the same move at $0.3150. The 100 period SMA on the H4 chart at $0.3190 could be the next hurdle.
See all the cryptocurrency technical levels.
Bitcoin mining operation shipping containers tumble in high winds
Remember the saga of the noisy neighbor up in the northwest part of the city? Things are still in turmoil, it seems.
We wrote about the bitcoin mining operation taking place in a building on Garden of the Gods Road last May, and again in July when the operator, 3G Venture, was having trouble complying with the city’s noise ordinance, and again in August when the city decided not to cite the operator.
Now, the complaint — in addition to continued noise that a neighbor, Ron Graham Becker, says violates the city’s noise ordinance — centers on potential danger from stacking shipping containers against the building to buffer the sound.
Some of those containers, stacked four high, came tumbling down in high winds on Nov. 29 and 30, as shown in this photo provided by Graham Becker.
Says Graham Becker in an email to officials with the city, Fire Department and Pikes Peak Regional Building Department: “As you may know, a wall of shipping containers came crashing down at Bldg 1625 — 3G Venture II — during the high winds of this past Friday and Saturday, 29 & 30 November, 2019. Fortunately, as far as I know, no one was killed or injured. Very fortunate, indeed.”
Here’s another photo supplied by Graham Becker.
Graham Becker reports that he reported the incident to the federal Occupational Safety and Health Administration, which has filed an informal complaint against 3G, whose owner, John Chen, must file a response within five days.
His complaint, he says, states that “Approximately 10 employees exposed to ‘struck-by hazards’ in that shipping containers, used to isolate noise, are resting on uneven surfaces, stacked up to 40 feet high, and leaning precariously toward occupied areas. Contrary to Section 5(a)(1) of the OSH Act of 1970.”
In response to Graham Becker’s email, Colorado Springs Fire Department Fire Marshal Brett Lacy says the issue falls outside his purview.
We asked Regional Building about it, and got this response from RBD spokesperson Greg Degrindo, via email: “RBD would not be involved because the Building Code does not address, or regulate placement of shipping containers. A building permit is not required to stack shipping containers.”
The Indy also asked the city to comment, leading to this statement from the city communications office:
The City of Colorado Springs Planning Department and Code Enforcement divisions have been in communication with the owner of 3G Venture II for the past several months. City employees made the owner aware approximately one month ago that a development plan must be submitted to our Land Use Review division by Wednesday, December 4th. This development plan should address the owner’s intent for noise mitigation, including plans to ensure safety on and around the property. If the city does not receive the development plan by December 4th, Code Enforcement can issue a summons.
Chen tells the Indy he restacked the containers within a day or so, and “Everything is back to where it was.”
But Chen says he’s getting just as tired of the complaints as the complainers are getting of making those complaints.
“At some point I think it’s becoming — I don’t know how to put it. Everyone is entitled to their thinking, it’s becoming harassment,” he tells the Indy by phone. “At some point, it’s beyond reasonable.”
Chen asserts the bitcoin operation complies with the city’s noise ordinance, and it’s cost him a bundle to achieve that, but the complaints continue.
“I’m doing everything I can to comply with everything. Every little thing they’re calling everyone in the world,” he says. “I think there has to be some reasonableness in the whole thing.”
Meantime, we asked how his bitcoin mining operation is going, and Chen reports it’s been successful.