Recently, the European banking regulating sector is worried about getting specialized personnel who can oversee and regulate the crypto market in Europe. South African brokers can see the dilemma of the EBA (European Banking Authority) because they lack clarity regarding digital assets and how they should supervise, with crypto-related talent retention being a significant challenge following an interview with the EBA chairman by Financial Times. 

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BTCUSD: Technical Analysis

Monthly Chart

BTCUSD monthly chart - 29th Juy 2022

Monthly Resistance Levels: 49000, 32000, 25000.

Monthly Support Levels:  17600, 19000.

The BTCUSD pair has done about a 25% bullish rally at the time of writing this report. The bulls started pushing up the bitcoin price last week after a breach of the 19000 support level. 

If the Bullish run can breakout above the 25000 resistance level, it will take the price towards the 32000 level of resistance.

The crypto brokers who have held their short position for months may start thinking of taking their profits as the market structure is likely to change soon.

Weekly Chart

BTCUSD 2022 07 28 19 37 12

Weekly Resistance Levels:  $32000, $25000.

Weekly Support Levels:   $17600, $18000.

Last trading week closed bullish having done a 15% run from its opening price before the price retraced after hitting a resistance zone. The zone shows that long-position traders are in the market, and they intend to breakout above the 25000 level of resistance as they hold on to their position. A price breakout will expose the next resistance level of the 32000-dollar mark, which will be significant for the cryptocurrency market. 

However, the BTCUSD pair is still in a bearish state and the market is consolidating. A close below the support level of the 18000-dollar mark will take the price lower to the 15000-dollar level.

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Daily Chart

BTCUSD daily chart - 29th Jul 2022

Daily Support 17500

We expected the price of bitcoin to retest the 25000 and, 24000 levels, and we expected one of the two scenarios to happen around the zone. The breakout of the price above the resistance zones, or we get rejection of the price around the zone. However, we can see that the price was rejected around the resistance zone because the previous support level is now acting as resistance.

The BTCUSD pair may have a breakout above the current resistance level if the price of bitcoin can get another bullish surge with stronger momentum for the price of bitcoin to rise higher. 

Looking at the daily chart, we can see that the BTCUSD pair is creating higher highs and higher lows, giving us an uptrend pattern. If the buying power is built over time, we may see the price of bitcoin rise again.

Bullish Scenario:

The bullish scenario that just played out was unable to breakout above the 24500 price level before it dropped lower to the 21000 level. If the price fails to close lower than the 20000 level mark, and we see bullish engulfing candles, the bullish rally will attract more buyers into the market for another rally to the upside.

Bearish Scenario:

The sell scenario played out as expected when the sellers dominated the market from the 24000 zones by taking the price of bitcoin down. The downtrend is likely to continue if the price of bitcoin can close below the $20000 level. 



Thomas Peterffy is the founder of Interactive Brokers, and he is also the chairman of the board of directors of interactive an online trading platform. During his interview with Forbes, he was asked about his view on bitcoin and the US economy. According to the Forbes list of billionaires, his net worth is around $18 billion. 

He suggested that investors should have about 3% of their wealth in cryptocurrencies, just in case the fiat currency runs to hell. He thinks that the bitcoin asset could be valuable despite the current sell-off happening in the cryptocurrency market and plans to hold his bitcoin and buy more if the price of bitcoin should drop to the $12000 level.

Thomas’s view on the US economy and inflation as it hits 40 years high. He believes that the inflationary pressure will continue for years and not a short-term issue before the US economy can witness a low inflation rate. He also thinks that the US government might want to ban cryptocurrencies because they can be used to finance illegal activities. Furthermore, he also noted that government officials like the US Treasury Department will not be able to have control over the cryptocurrency transactions or keep track of payments and collect taxes.    

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Conclusion and Projection

The price of bitcoin did rise to retest the resistance level of 24500 before it dropped. If the next bullish run can breakout above the resistance zone we shall continue to see the cryptocurrency market attract more crypto brokers and more investors buying digital assets.

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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

John Walker

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