04.08.202207:28 Forex Analysis & Reviews: Technical Analysis of BTC/USD for August 4, 2022

Crypto Industry News:

Bitcoin Valley is a project that aims to strengthen "crypto-tourism" in Honduras. The bitcoin town is located in Santa Lucia, a commune in the south of the country. As part of this initiative, more than 40 local companies recognized bitcoin as a form of payment.

Bitcoin Valley is the first bitcoin city in Honduras. The initiative to attract new tourists takes place in Santa Lusia, a small town 20 minutes from the country's capital, Tegucigalpa.

The project was jointly developed by Blockchain Honduras, Guatemalan Coincaex cryptocurrency exchange, Honduras University of Technology, Decentral Academy and Santa Lucia Municipality.

Cesar Andino, owner of Los Robles shopping plaza in Santa Lucia, will now accept BTC as payment. Last week, he informed the media that he was waiting for the delivery of devices that would allow companies to accept payments in the first cryptocurrency. He also adds:

"In Santa Lucia, we will all be involved in this project ... The adoption of bitcoin will open us up to a different market and attract more customers. We need to globalize. We cannot close ourselves off on technology and be left behind when other countries are already doing it."

Carlos Leonardo Paguada Velasquez, founder of Blockchain Honduras and representative of the Central American Cryptocurrency Users Association (Acucrip), announced a few days before the official launch of Bitcoin Valley that around 60 companies would be involved in the project.

Technical Market Outlook:

The BTC/USD pair has hit the 50% Fibonacci retracement level located at $22,679 and the bulls are trying to use this level as a base for a bounce higher. The intraday technical support is seen at $22,507. The momentum is now weak and negative on the H4 time frame chart, so a deeper correction towards the level of $22,000 is possible before the bulls will wake up and start buying again. Please notice, the Bitcoin market keeps moving inside the ascending channel, so the bullish impulsive wave scenario to the upside is now invalidate. 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 - $23,739

WR2 - $23,529

WR1 - $23,421

Weekly Pivot - $23,319

WS1 - $23,211

WS2 - $23,110

WS3 - $22,900

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.