19.12.202210:49 Forex Analysis & Reviews: Technical Analysis of BTC/USD for December 19, 2022

Crypto Industry News:

The Central Bank of Russia is ready to consider allowing the use of cryptocurrency in the country. However, if it comes to that, it will only be as part of a legal experiment, said Governor Elvira Nabiullina.

"It is possible to consider transactions through an authorized organization in the country as part of an experimental legal regime. However, this would require the relevant law," Nabiullina said at a Bank of Russia press conference on December 16.

The main objection of the Bank of Russia to cryptocurrencies has always been that they cannot be used as a payment instrument, Nabiullina emphasized. She added that the central bank is also concerned about investor protection as the cryptocurrency market is very volatile.

While Russia does not formally prohibit its citizens from investing in cryptocurrencies, the Bank of Russia believes that the massive adoption of cryptocurrencies will inevitably lead to their use as a payment method.

Technical Market Outlook:

The BTC/USD pair had made a local high at the level of $18,600 and since then the corrective cycle is developed. The market has broken below 100 MA on the H4 time frame chart and is consolidating around this level inside a narrow range. The volatility is limited, so the rage is seen between the levels of $16,541 - $16,720. Any breakout below the range low would extend the corrective cycle towards the level of $15,984 ( November 28th low). The weak and negative momentum supports the short-term bearish outlook on the H4 time frame chart.

Weekly Pivot Points:

WR3 - $17,039

WR2 - $16,862

WR1 - $16,778

Weekly Pivot - $16,685

WS1 - $16,601

WS2 - $16,509

WS3 - $16,332

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 new yearly 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 longer term.