The BTCUSD pair on the monthly chart shows that the crypto traders who are shorting the BTC are engulfing the previous month


Top brokers and crypto investors are wowed by the new Japan Digital Asset Trust that was formed through a partnership by two notable companies. The yen-pegged stable coin will be made available to the customers who are requesting it, according to the report from authorities of the Japan Digital Asset Trust. Could this drive the adoption rate of Bitcoin(BTC), or would we see a further BTCUSD price decline of the number one crypto asset?

Let’s find out in the analysis below.

BTCUSD: Technical Analysis

Monthly Chart

BTCUSD monthly chart - 26th May 2022

Monthly Resistance Levels: 69000, 50000.

Monthly Support Levels:  12000, 28000, 35000.

The BTCUSD pair on the monthly chart had a bullish run and swing from the support level of 15,000 as of 2020. The bullish run hit the ATH of 69000 level before it went into 

consolidation. The bullish flag pattern is still maintaining its bullish bias on the monthly timeframe.

Some analysts think that the price will close below the neckline of the 28000 level and the bullish run will be overturned into a bearish trend when the support zone becomes resistant on the monthly chart.

Weekly Chart

BTCUSD weekly chart - 26th May 2022

Weekly Resistance Levels: 52098, 48560.

Weekly Support Levels:   37370, 28600, 35000.

 The price of bitcoin when below the support zone of 30000 level in the past two weeks but failed to close below the support zone. The crypto brokers previously took the price of the BTCUSD up after establishing a support level around the zone previously. 

The move on the weekly chart shows that the correction is about to turn into a full-blown downtrend if the psychological zone should give way to the crypto brokers selling the BTCUSD pair.

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Daily Chart

BTCUSD 2022 05 25 20 51 26

Daily Resistance 43200, 48000, 40000.

Daily Support 25000, 28000.

The Bears did about 36% run from the high of 40000 down to the recent lowest low. The price made some retracement from the lowest point and it has been ranging between the 31800 dollars- mark and 28000 level. If the price of bitcoin continues to consolidate, we may see the market sentiment shift from the selling bias to the buying trend.

The bitcoin believers like Robert Kiyosaki writer of Rich Dad Poor Day thinks that the bitcoin could find support around the 12000 and 9000 level but he remains bullish on the BTCUSD pair. Buyers are pushing the price up from the support level that previously took the price higher. Time will tell if bullish crypto brokers can take advantage of the zone to go long as they kept pushing the price up.

Bullish Scenario:

The bullish scenario is buildup gradually on the daily time frame but it needs to break out above the resistance zones of 32000 level without losing its support of 28000 level.

 Bearish Scenario:

The general trend favors the Bears, and the bearish scenario is expected to continue the crypto brokers can take the price of bitcoin below the 28000 and 25000 levels on the daily chart. The bear’s swing is a momentum force for the Bulls and the market condition is still in a bearish state. 

Bitcoin BTC News Events 

Major banks like Sumitomo Mitsui Trust Welcome Bitcoin Custody Business. 

The Trust Bank (Sumitomo Mitsui) entered into a partnership business with Bitbank a cryptocurrency exchange based in Tokyo and will launch a digital assets custody. The partnership will mean that Sumitomo Mitsui Trust will own 15% while 85% will be for Bitbank and it will be responsible for the custody of cryptocurrency and NFTs to their various customers.

The two companies’ partnership gave birth to a new company called Japan Digital Asset Trust. The objective of the company is to attract investors in the local market that are willing to hold the digital assets as long as the custody is provided by a recognized financial institution instead of crypto exchanges that are not facing some levels of scrutiny from an established regulatory body.

The proposed capital is about $77 million (10 billion yen), and the two companies have about 300 million yen as a startup. The running operation of the company is likely to start sometime in the year as they try to have a head start in Japan before other competitors dominate the market. Crypto Garage and Nomura are planning a joint venture and they proposed to run the kind of service to their customers.

Conclusion and Projection

The weekly chart shows that the BTCUSD pair is strongly bearish and it is likely going to retest the recent low of 25000 level it made about two weeks back. Short position crypto brokers are expecting a breakout below the zone of 25000 level for the bearish run to continue where it will expose the 20000 supports zone.

BTC bulls however, are optimistic for the 28000 and 25000 zones to become the bottom for potential long-orders and establish a support that will take the price up if the price of Bitcoin BTC can close above the 32000.

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This article will not be giving advice for investment. It is strictly for educational purposes. Please consult your financial advisor when trading on leverage instruments, as we will not be liable for any losses incurred. Your capital may be at risk

Noah Jones

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