03.02.202310:17 Forex Analysis & Reviews: Technical Analysis of BTC/USD for February 3, 2023

Crypto Industry News:

The idea of lifting the ban on cryptocurrencies began circulating in China after a former central bank official urged the country to reconsider its strict restrictions on cryptocurrencies.

Huang Yiping, a former member of the Monetary Policy Committee of the People's Bank of China (PBoC), believes that the Chinese government should reconsider whether the ban on cryptocurrency trading is sustainable in the long run.

Huang voiced his concerns about the future of fintech in China in a speech in December, according to a transcript published by local Sina Finance on January 29.

The former official argued that a permanent ban on cryptocurrencies could result in many missed opportunities for the formal financial system, including related to Blockchain and tokenization. He stated that cryptocurrency technologies are "very valuable" to regulated financial systems, adding:

"Banning cryptocurrencies may be practical in the short term, but whether it is sustainable in the long term deserves in-depth analysis," Huang stated.

He also stressed the importance of developing an appropriate regulatory framework for cryptocurrencies, although he acknowledged that it will not be an easy task.

Technical Market Outlook:

The potential corrective cycle in for of an ABC Zig-Zag pattern has been invalidated as the market made a new local high at the level of $24,248. A breakout above the level of $25,000 on BTC/USD is still needed in order to extend the rally towards the key mid-term technical resistance seen at $25,442, so there is still a room to the upside for bulls. Nevertheless, so far the bullish rally was capped at the local high and the market reversed towards the middle of the old trading range. The intraday technical support is seen at $23,298 and the key short-term technical support is located at $22,523 and $22,308.

Weekly Pivot Points:

WR3 - $24,554

WR2 - $23,983

WR1 - $23,640

Weekly Pivot - $23,412

WS1 - $23,069

WS2 - $22,842

WS3 - $22,271

Trading Outlook:

Despite the recent rally, 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 gamechanging level for bulls is located at $25,442 and it must be clearly violated for a valid breakout in the longer term.