Technical Analysis of BTC/USD for December 28, 2022

Crypto Industry News:

Russia's largest bank, Sber (formerly known as Sberbank), has announced its first issue of gold-backed digital financial assets. The bank considers DFA to be a "great alternative" to investing in a de-dollarization environment.

On December 26, Sber posted the news of its first gold-backed DFA release. The retailer and producer of metals, Solfer, became the first investor to acquire the issued assets. Gold-backed DFAs represent attesting monetary rights whose price and volume depend on gold prices.

According to the legal documentation of the issue, the bank will provide potential investors with up to 150,000 DFA to purchase. The assets will be available for purchase until July 30, 2023. The document mentions "high risk" for investors rooted in these types of assets, including "risk of illiquidity".

The current DFA legislation came into effect in 2020. In July 2022, Russian President Vladimir Putin signed a law banning digital financial assets as a payment method.

In June, a subsidiary of another Russian state-owned bank, VTB Factoring, reported its first major transaction in digital financial assets. As part of the transaction, the bank's subsidiary acquired a tokenized debt pool of engineering company Metrowagonmash, issued via the Lighthouse fintech platform.

Technical Market Outlook:

The BTC/USD pair had made a local high at the level of $17,055 in form of a Pin Bar candlestick pattern on H4 time frame chart and local low at the level of $16,271. The market keeps trading below 100 MA on the H4 time frame chart and is trading below the intraday technical resistance seen at $17,057. The volatility is still limited despite the recent spike down, so the trading rage is seen between the levels of $16,268 - $17,057. Any breakout below the range low would extend the corrective cycle towards the level of $15,984 (November 28th low).

Weekly Pivot Points:

WR3 - $17,153

WR2 - $16,998

WR1 - $16,916

Weekly Pivot - $16,845

WS1 - $16,746

WS2 - $16,688

WS3 - $16,533

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. Moreover, there is a clear test of the 50 WMA located at the level of $15,600, so any breakout below the moving average and a weekly candle close below moving average will be considered as another indication of the down trend continuation. The new yearly 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 longer term.