02.11.202209:28 Forex Analysis & Reviews: Technical Analysis of BTC/USD for November 2, 2022

Crypto Industry News:

India's central bank, Reserve Bank of India (RBI), is launching a pilot program for the digital rupee. Nine banks are participating in the project. "Settlements in central bank money would reduce transaction costs," claims the central bank.

India's central bank announced on Monday that "the first digital rupee pilot program will begin on November 1, 2022". The announcement added:

"Nine banks namely State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC were selected to participate in the pilot program."

The aim of the pilot is to test the settlement of transactions on the secondary market based on government securities.

According to the RBI, "the use of e-rupees is expected to increase the efficiency of the interbank market." Accounting "in central bank money will lower transaction costs." The central bank also noted that future pilots will focus on wholesale transactions and cross-border payments.

Technical Market Outlook:

The last 9% strong up move of Bitcoin has forced the momentum indicator to hit the extremely overbought conditions on the H4 time frame chart, so a pull-back is still taking place. Any violation of the local trend line might cause a rally towards the last swing high seen at $21,071. Nevertheless, it is worth to mention, that any breakout below the demand zone low seen at $20,211 would have extend the sell-off towards the recent low seen at $20,016 or below. Please notice, there is untested level of technical support seen at $19,686.

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.