FX.co ★ Technical Analysis of BTC/USD for October 7, 2021

Crypto Industry News:

The US Department of Justice has announced that it will appoint a team to enforce cryptocurrency laws. Thanks to the activities carried out by the new team, exchange users are to be better protected against possible abuses.

Lisa Monaco, who is the deputy attorney general, spoke about the plans to create a special team:

"Cryptocurrency exchanges want to be the banks of the future. We need to make sure that folks can have confidence when they're using these systems, and we need to make sure we've poised to root out abuse that can take hold on them ".

The US government wants to focus primarily on organizations that use cryptocurrencies for money laundering. According to Monaco, it's about a better fight against the financial ecosystem that enables criminals to grow their businesses and profit.

"We want to strengthen our capacity to dismantle the financial ecosystem that enables these criminal actors to flourish and - quite frankly - to profit from what they're doing".

The announced activities are to be implemented in cooperation with experts in cybercrime and anti-money laundering.

Technical Market Outlook:

The BTC/USD pair has made a new swing high at the level of $55,785, just above the 261% Fibonacci extension located at $55,198. This means the target for the wave 3 in our Elliott wave analysis scenario had been completed and the market might be ready to develop the corrective wave 4. The nearest technical support is seen at the level of $52,902 and $52,330. Please notice the extremely overbought market conditions on the H4 time frame chart support the possibility of the corrective wave 4 to happen soon.

Weekly Pivot Points:

WR3 - $61,007

WR2 - $54,857

WR1 - $52,632

Weekly Pivot - $42,280

WS1 - $43,798

WS2 - $38,065

WS3 - $35,092

Trading Outlook:

According to the long-term charts 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 $59,506. 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).