Crypto Industry News:
Indian Finance Minister Nirmala Sitharaman presented the 2022-23 economic analysis to Parliament. The Economic Analysis is the annual flagship document of the Ministry of Finance, which presents the performance of India's economy in the previous financial year and presents the economic outlook for the current financial year.
Including cryptocurrencies for the first time this year, the economic study highlights the "need for a common approach to regulating the crypto ecosystem."
The 414-page document explains: "The recent collapse of crypto exchange FTX and the ensuing sell-off in crypto markets has highlighted gaps in the crypto ecosystem," explaining:
"Crypto assets are self-referential instruments and do not strictly meet the test of being a financial asset as they do not involve internal cash flows."
India's central bank, the Reserve Bank of India (RBI), has also repeatedly warned that cryptocurrencies have no intrinsic value, adding that they pose a threat to the country's financial stability. The RBI has recommended banning cryptocurrencies such as Bitcoin and Ethereum.
The Economic Survey also states that "U.S. regulators have disqualified Bitcoin, Ethereum and various other crypto assets as securities." However, the chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, confirmed that Bitcoin is a commodity, but did not comment on Ethereum. Nevertheless, he stressed that most other tokens are securities.
Technical Market Outlook:
The potential corrective cycle in for of an ABC Zig-Zag pattern has been invalidated as the market made a new local high at the level of $24,248. A breakout above the level of $25,000 on BTC/USD is still needed in order to extend the rally towards the key mid-term technical resistance seen at $25,442, so there is still a room to the upside for bulls. The intraday technical support is seen at $23,950 and the key short-term technical support is located at $22,308.
Weekly Pivot Points:
WR3 - $24,554
WR2 - $23,983
WR1 - $23,640
Weekly Pivot - $23,412
WS1 - $23,069
WS2 - $22,842
WS3 - $22,271
Trading Outlook:
Despite the recent rally, 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 gamechanging level for bulls is located at $25,442 and it must be clearly violated for a valid breakout in the longer term.