03.10.202210:21 Forex Analysis & Reviews: Technical Analysis of BTC/USD for October 3, 2022

Crypto Industry News:

US Senator Bill Hagerty, a member of the Senate Banking Committee, outlined legislation to provide a safe haven for cryptocurrency exchanges ahead of "certain" actions by the Securities and Exchange Commission (SEC).

The Digital Trade Transparency Act of 2022, presented by Senator Hagerty, aims to provide regulatory clarity around two major issues plaguing crypto exchanges - the classification of digital assets and related liabilities under applicable securities laws.

"The current lack of regulatory clarity for digital content gives entrepreneurs and businesses a choice: navigate significant regulatory ambiguity in the US or move overseas to markets with clear rules for digital content," he said.

This regulatory uncertainty, according to Senator Hagerty, discourages investment in crypto spaces and hampers job creation in the US. As a result, the blockade "threatens US leadership in this transformative technology at such a pivotal moment."

Technical Market Outlook:

The BTC/USD pair has been seen moving lower over the weekend, but o a larger time frames the market is still consolidating inside a narrow zone. Only a sustained breakout above the levels of $20,221 - $20,580 would change the outlook to more bullish, however after the Bearish Engulfing candlestick pattern was made at the level of $20,374, the odds for a breakout higher are very low. The market conditions on the H4 time frame are positive, but the momentum is not strong at all. The nearest technical support is seen at $19,096 and $19,256. The swing low is seen at the level of $18,150.

Weekly Pivot Points:

WR3 - $19,869

WR2 - $19,490

WR1 - $19,335

Weekly Pivot - $19,190

WS1 - $18,955

WS2 - $18,731

WS3 - $18,351

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.