11.05.202007:30 Forex Analysis & Reviews: Technical Analysis of BTC/USD for 11/05/2020:

Crypto Industry News:

Global losses from cryptocurrency fraud and theft increased sharply in 2019, doubling compared to 2018. Despite many efforts to combat cryptocurrency fraud programs, countries like Belgium continued to suffer heavy losses.

According to a report, the Belgian Economic Inspectorate reported EUR 2.94 million in losses due to cryptocurrency fraud in 2019. Recent figures show that the number of cryptocurrency scams in Belgium has been increasing in recent years. In 2018, the Belgian Federal Public Service, known as FPS Economy, reported $ 2.5 million in losses related to cryptographic fraud in the country. Furthermore, these growing numbers are apparently "just the tip of the iceberg" because most fraud cases remain unreported.

Nathalie Muylle, Belgian Minister of Economy and Consumer Affairs, said real losses were higher than USD 3.2 million. According to her, Belgium primarily used a preventative approach to combat cryptographic fraud, while criminal law measures are still uncertain. In 2019, the economic inspection sent a prosecutor's request for fraud and is still awaiting a decision.

The Belgian authorities have indeed taken many preventive measures to solve this problem in recent years. In February 2020, the Belgian Office for Financial Services and Markets (FSMA) blacklisted several fake cryptography websites. Earlier, FPS Economy launched a website to increase awareness of the risks associated with crypto investments.

Technical Market Outlook:

The BTC/USD pair has lost about 15% of its value over the weekend and is currently trading around the level of $8,600 after a low was made at the level of $8,046. Still the key level of support is still seen at $7,943, but the nearest technical support is currently seen at the level of $8,464. Any violation of this level will deepen the correction towards the level of $7,934 which is a key short-term technical support for bulls. Weak and negative momentum supports the short-term bearish outlook about 13 hours before halving.

Weekly Pivot Points:

WR3 - $11,485

WR2 - $10,709

WR1 - $9,512

Weekly Pivot - $8,760

WS1 - $7,652

WS2 - $6,835

WS3 - $5,708

Trading Recommendations:

The recent rally in Bitcoin was made in anticipation of Bitcoin halving and it is a classic pump and dump scheme. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated.