The Iranian government allowed the extraction of cryptocurrency by treating mining as an industrial activity.
The decision was made this weekend, during the Sunday session of the Cabinet under the leadership of Iranian President Hassan Rouhani. Now that the cryptocurrency mining has been officially approved, entities involved in the operation will need to obtain a license from the Iranian Ministry of Industry, Mine and Trade, as noted in the report.
Financial media say that many experts interpret this move as the first step towards legalizing crypts in Iran, noting the potential use of the asset class to offset the paralyzing impact of US sanctions on the country.
Reportedly, the government's decision emphasized that the use of cryptocurrencies in domestic transactions remains prohibited, and those involved in the industry should be responsible for the risk without any guarantees from the government or the local banking sector.
Subsidized electricity rates - currently in the amount of half a cent per kilowatt - in Iran allegedly even prompted miners from mining centers, such as China, to relocate to the country.
The Iranian Electricity Industry Syndicate recently revealed its intention to raise electricity prices to 7 cents per kilowatt for miners. Officials were still debating how to deal with the growing popularity of operations in the country, and one government minister noted that Iran has become a heaven for miners.
Technical Market Overview:
The BTC/USD pair has been trading inside of the narrow trading range between the levels of $9,305 - $9,661 for quite some time now. There is no indication of a possible breakout higher, but only a sustained breakout above the trendline might be the clue from the market that the wave C is completed and now it is a time for another impulsive rally. The next technical resistance is seen at the level of $10,166.
Weekly Pivot Points:
WR3 - $11,468
WR2 - $11,040
WR1 - $10,062
Weekly Pivot - $9,661
WS1 - $8,704
WS2 - $8,287
WS3 - $7,289
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The larger degree WXY correction might have been completed and the market might be ready for another impulsive wave up.