FX.co ★ Technical Analysis of BTC/USD for June 3, 2022

Crypto Industry News:

The CEO of the Soros-founded foundation, Dawn Fitzpatrick, recently gave an interview in which there was quite a surprising statement. Namely, she believes that Ethereum will attract more investors from Bitcoin in the future.

According to her, the reason for this state of affairs will be the increasing impact of cryptocurrencies on the climate, combined with the world's desire to reduce energy consumption. In her opinion, new investors will not look favorably at Bitcoin - all because of the PoW (proof of work) consensus on which it is based and which consumes huge amounts of energy.

The CEO of Soros Fund Management also assured that cryptocurrencies "are not going anywhere", and their adoption will grow year by year. Moreover, Fitzpatrick is convinced that blockchain technology will find many great applications in the world. Although she herself believes more in Ethereum than in Bitcoin, in October last year, Fitzpatrick admitted that Soros Fund Management had "some Bitcoins."

She ended the interview with other, also somewhat surprising words. She did not agree with the recent statements of financial experts and famous personalities, including Elon Musk, who announced the impending crisis. According to her, the US economy will withstand the current Fed's policy and raising interest rates without falling into a recession.

It is worth adding that Ethereum is currently also based on the PoW consensus. However, everything is about to change with the upcoming transition to PoS (proof of stake). According to the information on the website www.ethereum.org, the change of the consensus from PoW to PoS is planned for the turn of the third and fourth quarter of this year. In turn, the creator of Ethereum himself, Vitalik Butherin, recently admitted that the transition to PoS could take place in August.

Technical Market Outlook:

The BTC/USD pair relief rally had been terminated at the key short-term supply zone located between the levels of $32,380 - $32,892. The local high was made at the level of $33,370 and then the market reversed below the technical support seen at $30,000. The market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend is intact. The first indication of the deeper correction would be a clear breakout above the range high located at the level of $32,870, however all the current attempts to rally are being faded and the Pin Bar candlesticks inside the range zone are present already.

Weekly Pivot Points:

WR3 - $33,360

WR2 - $32,016

WR1 - $30,581

Weekly Pivot - $29,009

WS1 - $27,632

WS2 - $25,903

WS3 - $24,538

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 round psychological level of $20,000.