Crypto Industry News:
Chainalysis, released data yesterday indicating that East Asia is the fourth largest cryptocurrency market in the world. In the period from July 2021 to June 2022, cryptocurrencies worth $ 777.5 billion were sent there. This number accounts for less than 13% of the global transaction volume in this period.
As a result, the survey showed that East Asia has lost ground to other markets this year. According to the data, the region saw a year-on-year increase in transaction volume by just 4%, making it the market with the lowest crypto activity this year. In 2021, East Asia was the third largest by volume of crypto transactions.
The biggest reason for this loss is probably the decline in cryptocurrency activity in China, the largest market in the region. The investigation showed that the country saw a decrease in transaction volume by 31% compared to the previous period. Meanwhile, Japan, for example, more than doubled this parameter. This is likely due to the Chinese government's suppression of crypto activity over the past year.
In addition to low cryptocurrency trading activity in the region, the data indicates that East Asia has surprisingly low DeFi adoption. Throughout the year, DeFi accounted for just 28% of East Asian transaction volume, less than all regions outside Eastern Europe.
Technical Market Outlook:
The BTC/USD pair bounce had been rejected from the trend line resistance seen around the level of $19,600 and is heading lower. So far the bulls are protected by the intraday support, however, the pressure may pay off soon when a breakout is made. There is still missing one more wave to the downside in order to complete the Falling Wedge pattern. The momentum is weak and negative on the H4 time frame chart, which supports the short-term bearish outlook for BTC that should result in another down wave. The nearest technical support is seen at $18,938 and $18,854, however, the target for bears is the swing low and range low seen at the level of $18,150. The supply zone located between the levels of $20,221 - $20,580 (marked as a red rectangle) is very important for bulls from a technical point of view, because only a sustained breakout above it would change the outlook to more bullish, so please keep an eye on this zone for a possible breakout towards the next target seen at $22,410.
Weekly Pivot Points:
WR3 - $19,510
WR2 - $19,356
WR1 - $19,287
Weekly Pivot - $19,202
WS1 - $19,133
WS2 - $19,048
WS3 - $18,894
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.
