BTC/USD Technical Forecast: Bulls Eyeing a Comeback Above $40k
Key highlights:
- Legislative Momentum: Senator Elizabeth Warren gains backing for a crypto-regulatory bill, targeting enhanced measures against illicit financial activities.
- Bullish Signals: BTC/USD steadies at $40,328 with technical indicators pointing to an uptrend towards resistance levels at $42,424 and $42,851.
- Sentiment Trends: Prevailing bullish sentiment with 73% market inclination, despite recent neutral shifts in trader sentiment.
Crypto Industry Update
In a notable development within the crypto industry, Senator Elizabeth Warren has reinforced her stance against digital assets, advocating for tougher regulations to mitigate money laundering activities. Her proposed legislation has garnered the endorsement of five additional senators, including Senators Raphael Warnock, Laphonza Butler, Chris Van Hollen, John Hickenlooper, and Ben Ray Lujan. This bipartisan bill, with Warren at the helm, is considered one of the most stringent attempts to regulate the digital asset space.
Elizabeth Warren wants to fight cryptocurrencies
Warren's objective is clear: to empower regulatory authorities with more robust tools to address the illegal use of cryptocurrencies. As she stated:
"The Treasury Department makes clear that we need new regulations to crack down on the use of cryptocurrencies to enable terrorist groups, enemy nations, drug dealers, ransomware gangs, and billion-dollar fraudsters to evade sanctions, finance illicit weapons programs and profit from devastating cyberattacks."
The proposed regulations suggest rigorous reporting requirements, extending Know-Your-Customer (KYC) protocols to transactions involving unhosted wallets. Despite pushback from parts of the crypto community who view the measures as too extreme, the bill continues to attract bipartisan support and endorsements from various institutions and law enforcement agencies.
Technical Market Outlook
The BTC/USD pair has seen a -9.77% correction, reaching a critical support level at $40,328. Two Pin Bar candles on the H4 chart indicate a potential reversal, as bulls prepare to push the trend upwards. Immediate targets for the bulls lie at $42,424 and $42,851.
Intraday support is now established at $41,142 and the recent low of $40,328. On the H4 chart, the key short-term demand zone spans from $38,477 to $38,029. A sustained move below this zone could shift the short-term trend to bearish. Meanwhile, bulls are aiming for the level of $48,200, the weekly high from March 28, 2022, as their next milestone.
Weekly Pivot Points
These are critical levels in technical analysis to anticipate market behavior:
- WR3: $48,882
- WR2: $45,536
- WR1: $43,937
- Weekly Pivot: $42,173
- WS1: $40,583
- WS2: $38,818
- WS3: $35,484
Trading Outlook
For long-term prospects, bulls are targeting the $48,200 level, assuming the market maintains its current momentum and does not fall below the crucial support level of $19,572. Major long-term support is identified at $32,829 and $31,790.
Intraday Indicator Signals
- Buy Signals: 16 out of 21 technical indicators
- Neutral Signals: 5 indicators
- Sell Signals: 2 indicators
- Buy Signals: 7 out of 18 moving averages
- Sell Signals: 11 moving averages
Sentiment Scoreboard
The sentiment remains largely bullish with 73% bulls compared to 27% bears, which is in harmony with last week's sentiment of 68% bulls. Over the past three days, sentiment has slightly balanced out to a neutral stance with 62% bulls versus 38% bears.
Useful Links
Important Reminder
The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.
Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.
