Crypto Daily: More giants announce BTC mining initiatives

Oct 14, 2022
07:10
2 min reading

Choise.com team

Crypto giant Binance has announced $500 million in funds for a miner lending project, with the goal of supporting Bitcoin mining. The announcement, made on October 14, says that Binance Pool would be supporting the mining industry and that it was also looking for cloud mining vendors.

Binance Pool believes that the funds would help keep the ecosystem healthy. Theannouncement reads, “As one of the world’s leading crypto mining pools, Binance Pool has a responsibility to help maintain a healthy digital asset ecosystem. In light of current market conditions, Binance Pool is launching a $500 million lending project to support crypto miners and digital infrastructure providers.”

The project focuses on providing secure debt financing services to both public and private blue-chip bitcoin (BTC) mining and digital asset infrastructure companies globally. Eligible borrowers would receive funds for an 18 to 24-month term, with interest rates ranging from 5% to 10%.

With respect to cloud mining vendors, Binance is looking to launch products related to cloud mining. Binance wishes for cloud mining vendors to work with it, as the cloud mining hash power will be directly purchased from BTC mining and digital infrastructure providers.

More firms enter the Bitcoin mining industry

Bitcoin mining is becoming popular among prominent companies and even state-owned entities. Metaplanet, which Skype co-founder Jaan Tallinn is associated with,investedin crypto hardware tech firm Fabric Systems. The latter aims to build energy-efficient bitcoin mining hardware.

Crypto software and services companyLuxornow also allows traders to bet on future mining revenue. The commodity being traded is called hashprice, and it is derived from hashrate revenue. Grayscale has also launched a new mining-related investment opportunity.

Meanwhile, Argentina’s state-owned energy company YPF is offering power to an international crypto mining company. It is a pilot with the goal of sustainability.

BTC price analysis

Yesterday, the US CPI data was released posting an increase of 8.2%, BTC price dropped below the $18,500 support zone. The bears gained strength with a low formed near $18,142.

After that the price gained bullish momentum and climbed above the $19,000 level. BTC cleared the 50% Fib retracement level of the downward move from the $20,443 swing high to $18,142 low. Besides, there was a break above a major bearish trend line with resistance near $19,150 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading below above $19,500 and the 100 hourly simple moving average. It is trading near the 76.4% Fib retracement level of the downward move from the $20,443 swing high to $18,142 low.

Source:BTCUSD on TradingView.com

On the upside, an immediate resistance is near the $20,000 level. A clear move above $20,000 might pump the price further higher.If Bitcoin fails to rise above the $20,000 resistance zone, it could start a downside correction. An immediate support on the downside is near the $19,500 zone.

Technicals

Hourly MACD is gaining pace in the bullish zone

Hourly RSI is now in the overbought zone

Support Levels – $19,500, $19,200

Resistance Levels – $20,000, $20,450, $21,200

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