03.11.202209:38 Forex Analysis & Reviews: Technical Analysis of BTC/USD for November 3, 2022

Crypto Industry News:

MicroStrategy, the largest corporate bitcoin holder, announced a reduction in the level of losses resulting from investments in BTC in the third quarter of 2022 Michael Saylor assures that the company plans to continue purchases and HODLing of the largest cryptocurrency.

The 2022 third quarter earnings report for MicroStrategy revealed a narrowed loss on bitcoin investment of $ 27.1 million. The technology giant is constantly buying BTC despite the prevailing downturn. The company announced at the end of the third quarter of 2022 that it currently owns 130,000 BTC. This amount is also 0.62% of all BTC owned by investors. The company said the total cost of investing in the digital asset is $4 billion. The average price at which MicroStrategy acquired the largest cryptocurrency was $30,639.

On November 1, the company reported impairment write-offs for the third quarter in the amount of $727 000. This figure is significantly less than the $917.8 million recorded in the second quarter of 2022, or the $65 million recorded in the previous year's third quarter.

An impairment loss is used in accounting to describe a decline in the value of assets held by businesses.

Technical Market Outlook:

The BTC/USD pair made a false breakout above the local trend line, reversed and is moving lower. It is worth to mention, that any breakout below the demand zone low seen at $20,211 would have extend the sell-off towards the recent low seen at $20,016 or below. Please notice, there is untested level of technical support seen at $19,686.

Weekly Pivot Points:

WR3 - $20,969

WR2 - $20, 737

WR1 - $20,585

Weekly Pivot - $20,489

WS1 - $20,346

WS2 - $20,252

WS3 - $20,014

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 in the long term.