The US DXY has been strong and the US dollar index reached a new high of 109.5 for the year 2022 when the risk-off sentiment from Federal Reserve Chairman Jerome Powell was made. The dollar was also strengthened last month following Jackson Hole’s speech that was hawkish on Friday, leading to the dollar index rising by 2.8% in August.
Should we expect a further decline in the BTC price across crypto broker platforms such as Pocket Option? Let’s find out as we analyze the BTCUSD price chart alongside other interesting news events.
BTCUSD: Technical Analysis
Monthly Resistance Levels: 45000, 40000
Monthly Support Levels: 20000, 17500, 18500
Cryptocurrency is becoming an acceptable solution for the Iranian government as the Minister of Industry, Mine, and Trade, Mr. Reza Fatemi Amin says that the new cryptocurrency law will allow businesses to use digital assets instead of the Euro and US dollar to import goods.
The government is also enabling cross-border payments with cryptocurrency, and the law will also allow local businesses to engage in crypto transactions with financial institutions.
The price of bitcoin remains trapped between the resistance level of 25000 and the support level of 18000 in the past weeks as the monthly time frame shows that the price is consolidating on the higher timeframe.
Weekly Resistance Levels: $25200, $24300
Weekly Support Levels: $18000, $17500
Bitcoin price closed its trading activity on 22 August 2022 at the 19500 support zone as the Bearish crypto brokers dominated the market for the past two weeks. The bearish trend is treating the key low of the weekly chart as the price drops into the 19000 zones. A continuation of the bearish run into the dip of the 18000-dollar level will likely retest the lowest low of the BTCUSD pair for the year.
However, the bitcoin price may retest the lows to establish a double bottom scenario for the price to reverse into an up trend which will bring relief to the long-term crypto brokers and investors. We have to wait patiently for the price to determine the actual direction of the market as the trading weeks unfold.
Daily Resistance 21699.50, 25222.00
Daily Support 17,567.00
The BTCUSD previous trading week pair moved about 13% away from the 22500 resistance levels when the Bears shorted the price of bitcoin down. The week saw high transaction volumes of 10000 BTC that were included in the Blockchain which has been in the wallet for nine years.
The daily timeframe shows a bearish swing as the Bear’s dominance can be seen in the shows the market
The Bulls are still holding on to the 19000 and 20000 zones as the price of bitcoin bounced from the zone at the beginning of the trading week. A close above the 22000-dollar mark will likely take the price up to retest the 24000 -25000 levels for a possible breakout above scenario.
The Bulls are holding the fort as the price reacted around the zone of support (19000) as the price of bitcoin slowed around the area. A bullish momentum can resume if the Buyers can get favorable factors from the global economy that will boost their direction.
The bears are yet to take the price below the 19000 level with a close for the bearish run to continue its trend. The market has about an 80% chance for the bearish scenario to continue if it can prevent the price of bitcoin from closing above the 25000-dollar level.
Bitcoin BTC News Events
WHY BITRIVER AND SBI CRYPTO CUT TIES.
According to reports from Washington DC, the Japanese crypto mining operator known as SBI Crypto reportedly severed its link with BitRiver a Russian mining firm after it was pressured by Washington-based lawmakers.
In other to put pressure on the Russian authority for its aggression and invasion of Ukraine, the American diplomats raised the complaint that several Japanese crypto exchanges were still operating in the state of the aggressor, and they are violating international sanctions and will be at risk if they fail to cut their ties with Russia and their firms.
Some Japanese crypto firms have set up operating sites in Siberia as it provides them with better opportunities in terms of minimal cooling costs and lower energy prices. BitRiver is one of those firms that partnered with Russian firms and operates mining centers on behalf of Japanese clients in the mining hub of Bratsk in the southern part of Siberia. Due to the pressure from American lawmakers and Japanese regulators, plenty of crypto brokers, and players including SBI Crypto have responded to the call.
An announcement from the SBI Crypto parent company said that it will round up all its Russian-based mining activities according to the report gotten from the media outlet Coindesk.
Conclusion and Projection
The BTCUSD is likely to start the A-B-C corrective structure of a completed five-wave downward movement of Elliot wave theory according to some crypto analysts. We are likely going to see the price of bitcoin bounce from the current area of 19000 as the price of BTC is rejected around the support zones.
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