FX.co ★ Technical Analysis of BTC/USD for February 7, 2022

Crypto Industry News:

Twitter co-founder and Block (formerly Square) CEO Jack Dorsey discussed the implications of a Bitcoin-based universal basic income (UBI) strategy with US Congressional candidate Aarika Rhodes.

"Vague information forces and encourages people to behave in negative (financial) behavior that does not work positively for themselves, their community or family," said Dorsey, pointing to a lack of transparency in the existing centralized financial system.

Bitcoin's transparency is what Dorsey believes has the potential to solve many use cases and problems as a direct result of using fiat currency. Thanks to business initiatives, including Start Small, where the entrepreneur has invested over $ 55 million in the US and abroad to experiment with UBI. This experiment will be based on BTC will involve creating a small, closed community of sellers and traders who adhere to Bitcoin standards. Based on fate and willingness to participate, it intends to identify use cases for large-scale implementation.

Regarding financial literacy, Dorsey said adopting the Bitcoin standard requires long-term thinking, however, his skepticism about a BTC-powered universal basic income will decrease based on the results presented in ongoing experiments:

"Owning Bitcoin will change the way people think in a fundamental, positive way, while encouraging other activities such as trading."

Along with the benefits of the Bitcoin standard, Dorsey is also aware of its negative effects. Finally, he highlighted the ineffectiveness of government policy and the way UBI helps to meet some of the challenges.

Technical Market Outlook

The BTC/USD pair has made a new local high at the level of $42,990 as the up move continues all the weekend. The next target for bulls is seen at the level of $43,484 and $44,937 (swing high).The bulls are in control of the market on the lower time frames as the momentum is strong and positive on the daily time frame chart as the market is bouncing from the extremely oversold conditions. The nearest technical support is seen at $41,101 and $40,635.

Weekly Pivot Points:

WR3 - $50,386

WR2 - $46,257

WR1 - $44,577

Weekly Pivot - $40,396

WS1 - $38,765

WS2 - $34,482

WS3 - $32,499

Trading Outlook:

The market is bouncing after over the 80% retracement made since the ATH at the level of $68,998 was made. The level of $44,442 is the next key technical resistance for bulls, but the game changing technical supply zone is seen between the levels of $52,033 - $52,899. When this zone is clearly broken, the BTC is back to the up trend.