Technical Analysis of BTC/USD for December 12, 2022

Crypto Industry News:

While many crypto scammers have been able to escape punishment, the same is not true of FTX CEO Sam Bankman-Fried (SBF). Parallel to the ongoing FTX fraud investigation, the US Department of Justice (DOJ) is reportedly investigating potential fraud involving SBF moving funds overseas in the days before FTX filed for bankruptcy.

A federal investigation is investigating Sam Bankman-Fried's involvement in the improper transfer of FTX funds to the Bahamas when the defunct cryptocurrency exchange filed for bankruptcy on November 11.

The anonymous whistleblower further revealed that Department of Justice officials met with court-appointed FTX supervisors to discuss the extent of information needed for further investigation. The Department of Justice also plans to investigate whether the SBF unlawfully transferred FTX funds to Alameda Research.

Given Sam Bankman-Fried's strong ties to US politics, the scammer has yet to be charged with any crimes and continues to participate in discussions on Twitter. On December 9, the SBF accused Binance CEO Changpeng "CZ" Zhao of lying and backing out of a deal that could have saved FTX at the last minute.

Technical Market Outlook:

Despite the low volatility is very limited and the intraday market movements are narrow the bears had managed to break below the local trend line support. The nearest technical resistance is seen at $17,428 and the next local technical support is seen at $16,700. There is no indication of the down trend on Bitcoin to terminate or reverse yet, so the next target for bears is seen at the level of $13,563 (2019 high).

Recently BTC/USD spiked up over 12% already as bulls were seen moving towards the next technical resistance located at $17,600. The 38% Fibonacci retracement level of the last wave down is seen at $17,664, so this level might be tested as well (in a form of a spike up etc.).

Weekly Pivot Points:

WR3 - $17,347

WR2 - $17,136

WR1 - $17,014

Weekly Pivot - $16,995

WS1 - $16,803

WS2 - $16,718

WS3 - $16,502

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues without any indication of a possible trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support at the psychological level of $20,000 had been violated, the new swing low was made at $15,555 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout in the long term.