06.02.202309:57 Forex Analysis & Reviews: Technical Analysis of BTC/USD for February 6, 2023

Crypto Industry News:

During a recent visit to Sri Lanka, American billionaire Tim Draper introduced the idea of adopting Bitcoin as legal tender in the fight against corruption that has contributed to hyperinflation in the island nation. However, a key Sri Lankan authority - central bank governor Nandalal Weerasinghe - said that doing so would worsen the country's economic situation.

While in Sri Lanka, Draper met with President Ranil Wickremesinghe and Weerasinghe to recommend Bitcoin as a viable option to solve financial problems.

During the meeting, Draper highlighted a key concern for Sri Lanka:

"Have you seen Sri Lanka in the news? It is known as the capital of corruption. A country known for corruption will be able to keep excellent records thanks to the adoption of Bitcoin."

Because he recommended the head of Sri Lanka's central bank to use "decentralized currency", he received a short reply "we do not accept". Weerasinghe further stated:

"100% Bitcoin adoption will never be a reality in Sri Lanka."

Weerasinghe added that having Sri Lanka's own fiat currency instead is critical to monetary policy independence and will ensure the effective inclusion and payment of electronic welfare benefits. "We don't want to deepen the crisis by introducing Bitcoin," Weerasinghe concluded.

Technical Market Outlook:

A breakout above the level of $25,000 on BTC/USD is still needed in order to extend the rally towards the key mid-term technical resistance seen at $25,442, so there is still a room to the upside for bulls. Nevertheless, so far the bullish rally was capped at the level of $24,258 after the Shooting Star candlestick pattern was made on the Daily time frame chart and the market reversed towards the middle of the old trading range. The key short-term technical support is located at $22,523 and $22,308.

Weekly Pivot Points:

WR3 - $22,820

WR2 - $22,768

WR1 - $22,745

Weekly Pivot - $22,715

WS1 - $22,693

WS2 - $22,663

WS3 - $22,610

Trading Outlook:

Despite the recent rally, 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 gamechanging level for bulls is located at $25,442 and it must be clearly violated for a valid breakout in the longer term.