• The prices of Bitcoin (BTC) and Ethereum (ETH) declined on Tuesday, as sentiment in cryptocurrency markets shifted following a move to a multi-month high.
• BTC/USD retreated from earlier highs, unable to break the resistance level at $25,200, whilst ETH/USD fell below its long-term support point of $1,675.
• The relative strength index (RSI) also failed to move beyond its own ceiling at 66.00 for Bitcoin and 61.00 for Ethereum.

Bitcoin Retreats Following 8-Month High

Bitcoin (BTC) prices dropped from their earlier highs during Tuesday’s session, as sentiment shifted following a move to a multi-month high. Prices surged to their highest point since last August earlier in the day, prior to a red wave sweeping through the market.

BTC Unable To Break Resistance Level

Following a high of $25,126.85 earlier in today’s session, BTC/USD has since gone on to fall to a low of $24,642.57. Tuesday’s earlier high sent the world’s largest cryptocurrency to its strongest point since June 13th but bulls were unable to force a breakout of the resistance level at the $25,200 mark. In addition to this, the relative strength index (RSI) also failed to move beyond its own ceiling at 66.00. As of writing, the index is tracking at 63.29 which is marginally above a support zone at 61.00.

Ethereum Drops Below Long-Term Support Point

Ethereum (ETH) also moved lower in today’s session as bears pushed prices below the $1,700 level ETH/USD plunged to an intraday low of $1,671

• Authorities in the Russian region of Irkutsk have filed 1,000 lawsuits against people minting coins in their homes.
• Courts have ordered the defendants to compensate power distributors for losses and damages.
• Power distributors are prosecuting illegal miners by identifying increased loads on the grid at substations.

1,000 Lawsuits Filed Against Crypto Miners in Irkutsk

Authorities in the Russian region of Irkutsk have so far filed 1,000 lawsuits against what they call „gray“ miners, or people minting coins in their homes. In over half of these cases, courts have ordered the defendants to compensate the operators of the distribution networks.

Illegal Mining Detected Through Increased Loads on Grid

Power distributors in the Siberian Irkutsk Oblast have filed lawsuit number 1,000 against consumers illegally mining cryptocurrency in residential areas. In 600 of these cases, judges have decided that the so-called „gray“ miners should pay a total of more than 260 million rubles ($3.5 million) in compensation for losses and damages. The most common reason for going to court is an unusually high usage of electricity, with one man having burned almost 80,000 kWh per month over a year period – exceeding that consumed by other 15 homes on his street.

Clampdown on Home Crypto Mining

In recent years authorities have been trying to clamp down on home crypto mining as it has become a popular source of additional income for a growing number of people. Officials believe that regulating mining and introducing differentiated rates depending on consumption can help solve this issue. Power distribution companies are now prosecuting illegal miners by identifying increased loads on the grid at substations using subsidized electricity rates for domestic purposes which can be as low as $0.01 per kWh in rural districts..

Crypto Mining Bill Under Review By Parliament

Crypto mining is yet to be regulated in Russia with a dedicated bill under review by parliament however such activities are not explicitly prohibited at this time . Deputy Minister Pavel Snikkars was quoted saying that electricity distribution companies have started to identify improvised mining farms and prosecute illegal miners accordingly .

Conclusion

It remains unclear how regulation will affect crypto mining operations but authorities are actively looking into ways to combat “gray” miners utilizing subsidized electricity resources while also providing clarity regarding legal operation within Russia’s borders .

• Bitcoin fell to a seven-day low on Monday, as bullish sentiment faded in cryptocurrency markets.
• Ethereum also declined but remained above $1,600.
• The 14-day relative strength index (RSI) for both Bitcoin and Ethereum dropped to their lowest readings in nearly a month.

Bitcoin Hits 1-Week Low

Bitcoin (BTC) started the week falling to a seven-day low, as market sentiment began to shift downwards. BTC/USD has now fallen lower for five straight sessions, with today’s decline taking prices to a bottom of $22,734.48. This drop sees bitcoin hit its weakest point since January 30th when prices were trading at a floor of $22,500. The 14-day relative strength index (RSI) for Bitcoin broke out of a floor at 68.00 and is now tracking at 61.15; the lowest reading for the index in nearly a month, following an extended streak in overbought territory.

Ethereum Below $1,600 Level

Ethereum (ETH) also moved lower on Monday, however prices were able to remain above the $1,600 level despite the decline. Following a high of $1,665.26 on Sunday, ETH/USD dropped by as much as 2% in today’s session and hit a low of $1,616.30 in the process. As a result of this sell-off ethereum moved closer to its recent support level at $1,600; however bulls have so far rejected this collision and pushed ETH back up towards its opening price today of around 1$630 per coin..

What Caused This Reversal?

The recent declines are being attributed to Friday’s stronger than expected U.S nonfarm payrolls report which has made some question the Federal Reserve’s view that inflation has peaked and could lead them away from their current dovish stance towards monetary policy tightening which would be bearish for cryptocurrencies overall due to their lack of intrinsic value compared with fiat currencies such as USD or EUR etc..

Technical Analysis

The RSI for Ethereum appears to have found its own floor at 58 providing some support for bulls who may try another move back up towards 1$700 as we progress through this week provided this RSI support level holds firm..

Conclusion

Cryptocurrency markets have seen mixed results today with Bitcoin heading lower whilst Ethereum remains relatively stable above 1$600 . Recent economic data from the US has caused some uncertainty regarding central banks policies leading many investors away from riskier assets such as crypto . Technical analysis shows that both coins have dropped below certain key levels indicating that further losses may be ahead if these levels are breached .