FX.co ★ Technical Analysis of BTC/USD for May 11, 2022

Crypto Industry News:

US Treasury Secretary Janet Yellen called on US lawmakers to develop a "coherent federal framework" for stablecoin to counter threats to financial stability.

In a recent Senate Banking Commission hearing on the Financial Stability Supervisory Board's Annual Report to Congress, Yellen reiterated her previous position calling for a regulatory framework for stablecoins, citing the November report of the Presidential Working Group on Financial Markets. In addition, the treasury secretary spoke of TerraUSD (UST), the third largest stablecoin by market capitalization, which has dropped to $ 0.67 in the past 24 hours.

Addressing Yellen, Pennsylvania Senator Pat Toomey also pointed out that UST was an algorithmic stablecoin, "unsecured by cash or securities." The treasury secretary added that given market growth, it would be "highly appropriate" to pursue a "coherent federal framework" for stablecoins by the end of 2022. She called for cooperation among members of Congress to pass such a framework.

Technical Market Outlook:

The BTC/USD pair has made another swing low at the level of $29,765. The bulls keep trying to bounce higher, but were rejected from the nearest technical resistance seen at $32,807. The weak and negative momentum supports the short-term bearish outlook with a new target for bears seen at the level of $28,930. The market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend is intact.

Weekly Pivot Points:

WR3 - $43,590

WR2 - $41,841

WR1 - $37,271

Weekly Pivot - $35,409

WS1 - $31,101

WS2 - $29,209

WS3 - $24,500

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues. 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 key long term technical support is seen at the level of $32,899 and the at the round psychological level of $30,000.