FX.co ★ Technical Analysis of BTC/USD for February 16, 2022

Crypto Industry News:

The President of Belarus, Alexander Lukashenko, signed a decree confirming the country's formal support for the free circulation of cryptocurrencies.

Lukashenka's press office announced that the president had signed a decree called "On the register of virtual wallet addresses and cryptocurrency circulation."

The document provides the legal basis for Belarus Hi-Tech Park to establish and manage a register of crypto wallet addresses used in illegal activities. The document details the process and standards of government seizure of cryptocurrencies from criminals.

The decree is designed to protect crypto investors from potential losses and "prevent unintentional involvement in activities prohibited by law."

The press release indicates that Belarus has taken a friendly stance on cryptocurrencies:

"Belarus is consistently developing the legal field that regulates activities related to digital assets and, unlike many other countries, enables the free circulation of digital currencies."

According to the document, the Belarusian Council of Ministers is obliged to take appropriate measures to implement the decree within three months of its publication.

Technical Market Outlook

The BTC/USD pair has made another up wave with the local high at the level of $44,801. The next target for bulls is seen at the level of $46,673 (38% Fibonacci retracement level on the daily time frame chart) which is above the key short-term supply zone located between the levels of $45,347 - $45,826. The nearest technical support is seen at $43,484 and $42,700. The bulls are in control of the market on the higher time frames as the momentum is strong and positive on the daily time frame chart as well, so the market is bouncing from the extremely oversold conditions.

Weekly Pivot Points:

WR3 - $48,470

WR2 - $47,163

WR1 - $44,156

Weekly Pivot - $42,937

WS1 - $40,001

WS2 - $38,380

WS3 - $35,654

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.