FX.co ★ Technical Analysis of BTC/USD for August 18, 2021

Crypto Industry News:

Regulators around the world continue to put pressure on crypto companies. The Spanish National Securities Markets Commission (CNMV) has issued a warning regarding several cryptocurrency and financial market related companies for offering unregistered services.

According to the official document, the CNMV warned 12 entities that they were not registered with the relevant commission register. The listed entities, which include leading cryptocurrency trading platforms such as Huobi and Bybit, are not allowed to provide investment services in Spain.

The consulting site of CNMV states that only registered companies are authorized to provide securities related services. While the securities regulator does not have the power to directly prohibit an entity from operating in the country, the CNMV may appeal to a court. The July Crypto Company Guide report in Spain revealed that around 120 crypto companies are already registered and operating in Spain.

Spain created a rather friendly environment for crypto companies last year. The Committee on Economy and Digital Transformation approved the law to create a sandbox for financial technologies.

Technical Market Outlook:

The BTC/USD pair has made a new local low at the level of $44,162 as the pull-back deepens. The market is still trades inside of the ascending channel, but please keep an eye on the level of $43,686 because any violation would be negative for bulls and could deepen the correction out of the channel. The immediate technical resistance is seen at the level of $45,043 and $45,710.

Weekly Pivot Points:

WR3 - $54,673

WR2 - $51,130

WR1 - $49,247

Weekly Pivot - $46,037

WS1 - $43,891

WS2 - $45,515

WS3 - $38,510

Trading Outlook:

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 $47,000. 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).