Crypto Industry News:
Internet portals reported that, according to the latest reports, the Deaprtament of Justice of the United States has already started an investigation into the FTX exchange. This investigation could extend to the entire cryptocurrency industry. We can therefore expect extensive explanations in the coming months and possibly testimony from Sam Bankman-Fried as well. At the same time, US senators, including Senator Elizabeth Warren, are already pointing out that the cryptocurrency industry should finally see more stringent law enforcement.
An investigation is unlikely to be any good for the industry, at least in the short term. We can expect that there will be more projects and institutions with dubious security features. On the other hand, probably few projects (if any other than FTX and Alameda) would be able to keep insolvency from the market from May / June this year, when Luna collapsed and other big players such as Celsius and Voyager. Such projects would need trucks with money for this.
Technical Market Outlook:
The BTC/USD pair has bounced from the swing lows located at the level of $15,555 and tested the technical support seen at $17,600. Moreover, the bulls retraced 38% of the whole sell-off and hit the level of $18,135 before the pull-back. The market conditions on the H4 time frame chart are still oversold, however, no significant breakout has been made yet. The nearest technical resistance zone is seen at $17,600 $18,150 and $18,220. There is no indication of the down trend to terminate or reverse just yet.
Weekly Pivot Points:
WR3 - $21,429
WR2 - $21,125
WR1 - $20,930
Weekly Pivot - $20,825
WS1 - $20,629
WS2 - $20,524
WS3 - $20,222
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.
