Technical Analysis of BTC/USD for February 21, 2023

Crypto Industry News:

The world's largest cryptocurrency, Bitcoin, once again brings countries together as the government of El Salvador opens a "Bitcoin Embassy" in the United States.

El Salvador, which became the first country in the world to approve Bitcoin as legal tender in 2021, is expanding its Bitcoin strategy through a new partnership with the Texas government. The intergovernmental cooperation aims to create a Bitcoin Embassy or El Salvador representative office in Texas to work on new projects that will promote BTC adoption.

Milena Mayorga, El Salvador's ambassador to the United States, announced the news in a statement on Twitter.

"During my meeting with Texas Deputy Secretary of the Government Joe Esparza, we discussed opening a second Bitcoin Embassy and expanding trade and economic exchange projects," Mayorga said.

The latest initiative comes months after El Salvador opened its first Bitcoin embassy in the southern Swiss city of Lugano in October 2022. As part of a joint effort, the two pro-crypto jurisdictions have begun work to establish a physical government presence to promote collaboration in educational institutions and research related to Bitcoin.

According to former Blockstream chief strategy officer Samson Mow, the Bitcoin embassy phenomenon is another step towards Bitcoin acceptance by nation states and cities. He said such initiatives lead to cooperation between countries to develop new initiatives, such as creating alliances between places that have adopted Bitcoin.

Technical Market Outlook:

The BTC/USD pair had made a new local high at the level of $25,257 and reversed sharply lower to make a local pull-back. The pull-back did not last for long and the market is now consolidating the recent gains around the level of $24,500. A sustained 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 strong and positive momentum on daily time frame chart supports the short-term bullish outlook for BTC, however, the market is coming off the extremely overbought conditions on H4 time frame chart.

Weekly Pivot Points:

WR3 - $25,667

WR2 - $24,967

WR1 - $24,709

Weekly Pivot - $24,259

WS1 - $24,000

WS2 - $23,550

WS3 - $22,841

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.