Technical Analysis of BTC/USD for November 3, 2021

Crypto Industry News:

Cryptocurrency laws around the world vary significantly: China has in recent months suppressed significant cryptocurrency activity, while Japan has only recently allowed specialized cryptocurrency investment funds. El Salvador, on the other hand, has accepted Bitcoin as a legal currency.

While financial centers around the world strive to regulate this sector, Singapore is striving to become the global capital for cryptocurrency businesses. According to Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), the city-state might have been left behind if it hadn't had an edge in dealing with cryptocurrencies.

The country is at the forefront of this movement thanks to its openness to cryptocurrencies, having developed a legal framework that favors their exploitation. The tax system was also modified to encourage the development of the industry.

According to Menon, MAS is introducing "very strong regulations" to authorize companies that meet the requirements and respond to numerous business risks.

Following the entry into force of the Payment Services Act in January 2020, 170 companies applied for a MAS license, bringing the number of applicants to around 400. Since then, only a handful of cryptocurrency companies have obtained the coveted licenses. About 30 applicants withdrew their applications after interacting with the regulator.

Technical Market Outlook

The BTC/USD pair has broken above the short-term trend line resistance around the level of $62,000 as the momentum starts to pick up again. The market made a local low at the level of $64,279 during an increased volatility session, but the rally had terminated with a Pin Bar candlestick pattern. The next target for bulls is seen at the level of $64,920 and $66,970 (ATH). On the other hand, the first Fibonacci retracement level, the 38% level, is seen at $56,934. The larger time frame trend remains up.

Weekly Pivot Points:

WR3 - $70,127

WR2 - $66,705

WR1 - $64,387

Weekly Pivot - $60,937

WS1 - $58,287

WS2 - $54,685

WS3 - $52,480

Trading Outlook:

According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $66,974 (the previous ATH level). This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).