08.12.202210:24 Forex Analysis & Reviews: Technical Analysis of BTC/USD for December 8, 2022

Crypto Industry News:

Fabio Panetta, a member of the board of the European Central Bank (ECB), has proposed that the European Union (EU) ban cryptocurrency assets whose issuance has a significant environmental impact.

Panetta says authorities should address the environmental impact of mining. He added that tokens "responsible for an excessive ecological footprint should also be banned."

He also went on about other threats related to the cryptocurrency market. In his eyes, this is often a threat due to the "incredibly high leverage and interconnections" between entities in the industry. He referred to the collapse of the FTX exchange.

"The mismanagement of cryptocurrency companies has compounded these structural flaws. Insufficient transparency and disclosure, lack of investor protection, and weak accounting and risk management systems have been blatantly exposed as a result of the collapse of FTX. After this, the cryptocurrency [market] may shift from centralized to decentralized exchanges, creating new risk due to the lack of a central governing body," explained Panetta.

It is worth noting that his call to ban "ungreen" cryptocurrencies comes after the European Parliament's Economic and Monetary Affairs Committee approved the Markets in Crypto Assets (MiCA) Act in October after extensive discussions. The legal framework is now due to be finally approved after legal and linguistic scrutiny by EU lawmakers. Many experts expect the new EU cryptocurrency policy to take effect from 2024.

Technical Market Outlook:

Bitcoin has been seen testing the local trend line support located around the level of $16,700. So for there was no breakout below the trend line, nevertheless, the momentum remains weak and negative on the H4 time frame chart. The volatility is very limited and the intraday market movements are narrow. The next local technical support is seen at $16,020. There is no indication of the down trend on Bitcoin to terminate or reverse yet, so the next target for bears is seen at the level of $13,563 (2019 high).

Recently BTC/USD spiked up over 12% already as bulls were seen moving towards the next technical resistance located at $17,600. The 38% Fibonacci retracement level of the last wave down is seen at $17,664, so this level might be tested as well (in a form of a spike up etc.).

Weekly Pivot Points:

WR3 - $17,953

WR2 - $17,573

WR1 - $17,420

Weekly Pivot - $17,221

WS1 - $17,068

WS2 - $16,869

WS3 - $16,516

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 $15,555 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.