31.10.202209:35 Forex Analysis & Reviews: Technical Analysis of BTC/USD for October 31, 2022

Crypto Industry News:

As the global financial ecosystem continues to undergo major changes, young investors in the United States are increasingly leaning towards cryptocurrency assets as an alternative investment option to add to their retirement plans.

A recent study by Charles Schwab, an American asset manager, of approximately 1,100 people who have 401 (k) retirement plans and are between the ages of 21 and 70, revealed a growing interest in digital assets.

About 45% of millennials and 46% of Gen Z revealed they wanted to invest in cryptocurrencies when asked what investment products they would like to have added to their retirement plan.

The study also found that 43% of Gen Z and 47% of Millennials have already invested in cryptocurrencies outside of their 401 (k) accounts.

This considerable interest in cryptocurrencies among Gen Z and Millennials contrasted with the moods of much older investors - Gen X and baby boomers.

According to the survey, only 31% of Gen X respondents and 11% of boomers want to invest in cryptocurrency assets under 401 (k) plans. Even more disappointing is the percentage of those older investors who already hold positions in the cryptocurrency market. 33% of Gen X admit to owning cryptocurrencies. From the boomer group, it is only 4%.

The study also found that rising inflation remains the biggest barrier to retirement for all investors who continue to seek safer investment vehicles to hedge against difficult economic conditions.

Technical Market Outlook:

The BTC/USD pair has tested the highs of $21,017 again over the weekend, however no breakout was made. The market reversed again towards the demand zone located between the levels of $20,221 - $20,580 and broke below the 30 periods moving average. The last 9% strong up move has forced the momentum indicator to hit the extremely overbought conditions on the H4 time frame chart, so a pull-back towards the intraday technical support seen at $20,21 is taking place.The momentum has hit the level of fifty already, so the lower level of the demand zone seen at $20,211 might be tested soon.

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.