16.08.202208:39 Forex Analysis & Reviews: Technical Analysis of BTC/USD for August 16, 2022

Crypto Industry News:

The world's largest fund managing assets worth over $ 8 trillion has opened a private trust that will allow institutional investors from the United States to gain direct exposure to Bitcoin's spot price. The event is all the more interesting in the context of BlackRock's previous moves, which from the beginning of 2022 clearly suggested an interest in the cryptocurrency industry.

The company-created trust is the first such BlackRock product to focus on Bitcoin and track its performance, minus the trust fund's expenses and liabilities. Importantly, the fund was opened just now, when Bitcoin has massively lost since the beginning of 2022 and is slowly recovering.

BlackRock has been researching blockchain technology and digital assets for a long time. Research areas include stablecoins, permissioned blockchains, asset tokenization and cryptocurrencies. What is even more important, BlackRock emphasized that his interest in the still 'energy-consuming' Bitcoin was caused by the research programs of the Rocky Mountain Institute (RMI) and Energy Web, which aim to bring Bitcoin mining to sustainable energy use. The fund known for its "green policy" and the so-called The ESG stressed that it "will closely monitor the progress of these programs".

August was a very successful month for Bitcoin, and BlackRock made some very important strategic moves during it.

Technical Market Outlook:

The BTC/USD pair had been capped several times around the level of $25k as the bulls clearly do not have enough momentum to make the sustained breakout possible. The intraday technical support is seen at $23,596 and might be hit any time now as the price keeps moving away from the $25k zone. The momentum is now weak and negative on the H4 time frame chart, so a deeper correction towards the level of $22,679 is possible as well. Please notice, the Bitcoin market keeps moving inside the ascending channel, so the bullish impulsive wave scenario to the upside is now invalidated. If there is no sustained breakout from the channel, the bears might accelerate the sell-off and test the swing low seen at the level of $17,600 again.

Weekly Pivot Points:

WR3 - $22,662

WR2 - $25,629

WR1 - $25,067

Weekly Pivot - $24,597

WS1 - $24,035

WS2 - $23,564

WS3 - $22,532

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues without any indication of a trend termination or reversal. 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 at the psychological level of $20,000 had been violated, the new swing low was made at $17,600 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout.