02.09.202208:22 Forex Analysis & Reviews: Technical Analysis of BTC/USD for September 2, 2022

Crypto Industry News:

Karl Racine, the US Attorney General of the District of Columbia in the United States, announced that his office has sued MicroStrategy and its co-founder Michael Saylor on charges of tax evasion.

Racine announced in a Twitter thread a lawsuit against MicroStrategy and its former CEO Michael Saylor, claiming that he "never paid any DC income taxes" and that the company "conspired" to help him avoid paying taxes. Saylor owes more than $ 25 million in taxes on income earned while in DC, according to the Attorney General's Office, but penalties from both the former CEO and MicroStrategy could be as high as $ 100 million.

According to Racine, the allegations came after the District Council's District Council's False Claims Act amended to encourage whistleblowers to report residents of tax evasion. The Attorney General's Office has enforcement powers under the revised law and has said it has the power to levy "triple compensation" for three times the taxes owed - $ 75 million in the case of Saylor.

Technical Market Outlook:

The BTC/USD pair had tested the level of $19,546 and it looks like a Double Bottom price pattern of the H4 time frame chart. Currently, the market is consolidating in a narrow zone located between the levels of $20,586 - $19,521 and only a clear and sustained breakout below this level might extend the drop towards the next target for bears that is seen at the level of $18,940 (technical support from July 13th) and $18,640 (technical support from July 1st). The momentum remains weak and negative, however, there is a bullish divergence seen on the H4 time frame chart between the price action (last low) and momentum. The larger time frame trend (daily and weekly) remains down until further notice and the major move up or down might be triggered today after the NFP Payrolls data from the USA are published.

Weekly Pivot Points:

WR3 - $20,566

WR2 - $20,144

WR1 - $19,963

Weekly Pivot - $19,722

WS1 - $19,540

WS2 - $19,300

WS3 - $18,878

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.