The BTCUSD pair on the monthly chart shows that the crypto traders who are shorting the BTC are engulfing the previous month
Introduction
The crypto brokers’ bias for long position trading is on the rise as BTC indicator from CryptoQuant data shows that crypto traders and investors aimed for the long-term position of the market. The indicator shows that some traders are about to take the price of BTC up despite the spike in the crypto market.
Read on for more insights into the BTC price action and news.
BTCUSD: Technical Analysis
Monthly Chart
Monthly Resistance Levels: 69000, 50000.
Monthly Support Levels: 20000, 25000.
The BTCUSD pair closed May’s candle on a bearish note after dominating the crypto market for months. June’s candle is experiencing sellers’ pressure as the price dips recently because of the regulatory pressure on a major cryptocurrency exchange (Binance) which also caused a big plunge in the cryptocurrency like bitcoin and BNB.
As the new month progresses, the price of bitcoin is likely to retest the lowest low it has done during the previous month. The 25000 level is not confirmed as support on the monthly chart until we get a strong reversal by the Bulls that will take the price up
Weekly Chart
Weekly Resistance Levels: 48230, 33000.
Weekly Support Levels: 28003, 25401.
The weekly chart of the BTCUSD pair shows that the price failed to close above the resistance zone of 33000 after attempting to breakout above the zone twice. The crypto brokers and crypto traders who intend to go long are not showing much enthusiasm in the market as the fear factor is still seen in the market as the trading activities are low.
The bulls failed to run over the 32600 zone for a bullish breakout at the close of the 30th May 2022 weekly candlestick, which indicates that the buying power of the long crypto brokers is low because they could not break out above the resistance zones. However, the new week is still showing some bullish build-up around the 30000 level for another bullish surge.
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Daily Chart
Daily Resistance 32370, 40000.
Daily Support 25401, 28003, 20000.
The Buyers are struggling to close above the 32370 level for the past few days having rejected the seller’s price of the 25401 level. Some crypto analysts think that the crash of the LUNA-UST ecosystem could be the reason for the short position momentum in the cryptocurrency market. The price is under the 50day moving average line and the 34000 level will keep acting as resistance to the bitcoin price unless the price can close above the zone. If the price should close lower than the 25401 zone on BTCUSD daily chart, the price may hit the support level of 20000 if the bearish trend continues to build momentum.
Bullish Scenario:
After the rejection of the price around the 32200-dollar mark, the bulls retested the zone before the price dropped again. The Bulls may wait for the price to dip to the 30000-dollar mark for another push if the bearish move does not take out the support level of that zone on the daily chart.
Bearish Scenario:
The BTCUSD pair is still in a Bearish state and the sellers will keep dominating the market whenever the price retests the resistance zones of 32200 unless a breakout above scenario happens on the chart.
A bearish scenario will continue if the bearish crypto brokers can take the price below the support zone of 25001-dollar levels on the daily time frame.
Bitcoin BTC News Events
THE NEW BILL TO OVERHAUL USA CRYPTO REGULATION.
In the USA, two senators in persons of Senator Cynthia Lummis and Kirsten Gillibrand unveiled a new bill on cryptocurrency regulation. The long-awaited bill finally hit the street recently. The new bipartisan bill dubbed the Responsible Financial Innovation Act has a comprehensive piece of crypto legislation to date and if the bill is passed it will affect crypto brokers, users, and all the participants in the industry.
From the bill, the Responsible Financial Innovation Act will give a clear guideline to supervising agencies on handling digital assets markets, provide a good and tailored framework for stable coins, also integrate digital assets into the banking laws, and introduction of a tax on the crypto assets.
Page 67 of the bipartisan draft bill contains clear provisions on the crypto securities and crypto commodity which has been a hanging issue in the crypto industry. Lummis-Gillibrand bills are regulating cryptocurrencies like Bitcoin, Ethereum, DogeCoin, and other stable coins. It also grants the CFTC primary authority over the crypto (spot) assets market. Likewise, the bill will also give room for payments of goods and services that do not exceed $101 from the capital gains tax. There is a provision for exemption of tax on personal transactions on goods and services but not on digital assets to digital assets or digital assets to cash or other financial assets.
The bill is expected to set a high and clear standard for the stablecoins and the banks or depository institutions are required to give 100% asset backing for the coins. Also, the bill gave a proper definition of a crypto broker to the protection of wallet providers, miners, software developers, and validators from being trapped in cumbersome tax reporting procedures.
Conclusion and Projection
The BTCUSD pair is back into the consolidation state as the price was rejected around the 32500 zone which is acting as resistance on the daily timeframe. Some crypto analysts like Saylor believe that the bitcoin price will not plunge to zero.
In other to prove some critics wrong, he said that why has Bitcoin not been banned by the government and why are they seeking means to regulate it and integrate it into the system?
Michael Saylor believes that bitcoin is going to achieve the price mark of $1 million because people have started to realize that bitcoin has come to stay and the level of adoption is expanding fast.
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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
- BTCUSD: Weekly Technical Analysis - September 30, 2022
- BTCUSD: Bulls to Dominate the Zone for the Price to Rise is Expected - September 16, 2022
- BTCUSD: Price of Bitcoin Bounce Expected - September 2, 2022
