10.10.202210:42 Forex Analysis & Reviews: Technical Analysis of BTC/USD for October 10, 2022

Crypto Industry News:

Grayscale, the world's largest cryptocurrency asset manager, announced a new investment providing exposure to BTC miners. The fund will raise money to buy Bitcoin ASIC machines that will be operated by Foundry Digital to mine and sell crypto on behalf of investors.

According to Grayscale's website, the company aims to create an income stream that differs from "traditional revenue-oriented investments."

The company will strive to buy mining hardware, buy and sell Bitcoins on a daily basis, and distribute operating income quarterly to investors.

Grayscale assumes that Bitcoin will return to higher values as part of a four-stage mining cycle: "Rising Bull", "Mining Gold Rush", "Inventory Flush" and "Shakeout".

The company says the mining cycle has entered an "Inventory Flush" phase where the hash rate remains high, but Bitcoin's price has dropped significantly. According to the theory, the next "bump" will lead to a drop in mixing speed as miners will be forced to shut down their machines.

The product is available to accredited investors only and requires a minimum investment of $ 25,000.

Technical Market Outlook:

The BTC/USD pair has been seen trading inside a narrow zone all weekend long, so the volatility is drying up. The supply zone (marked as a red rectangle) is very inportant for bulls from a technical point of view, because only a sustained breakout above the levels of $20,221 - $20,580 would change the outlook to more bullish, so please keep an eye on this zone for a possible breakout towards the next target seen at $22,410. The market conditions on the H4 time frame are weak and negative, so a local pull-back towards the short-term trend line support (marked in blue) might happen soon. The nearest technical support is seen at $18,944 and $18,856. The swing low is seen at the level of $18,150.

Weekly Pivot Points:

WR3 - $19,705

WR2 - $19,556

WR1 - $19,482

Weekly Pivot - $19,332

WS1 - $19,257

WS2 - $19,132

WS3 - $19,009

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues without any indication of a possible 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.