FX.co ★ Technical Analysis of BTC/USD for July 20, 2022

Crypto Industry News:

The results of a study by Forrester Consulting show that the use and awareness of Bitcoin in emerging markets in Africa, Latin America, the Middle East and Southeast Asia is growing.

According to the survey, 74% of consumers in these markets were aware of Bitcoin, while 52% of respondents to the survey indicated that they noticed an increase in BTC use in their country over the past 12 months.

Interestingly, 91% of respondents believe that Bitcoin can enable a digital future, especially when it comes to providing a payment and transfer platform that local banks may not be able to offer.

The results indicate that despite recent price volatility, BTC use is likely to continue to grow as it fills the digital trading gap. The data from the survey talks about the potential 'jump' effect that occurs when users in emerging markets use Bitcoin for more daily transactions.

Additional drivers of Bitcoin use in emerging markets include enabling consumers to gain financial independence, dissatisfaction with existing financial services, and the need for additional ways to make and receive payments or transfers.

Technical Market Outlook:

The BTC/USD pair has bounced strongly from the lows seen at $18,916 and is about to break out of the ascending channel. The last local high was made at the level of $23,835. In a case of further bounce extension, the next target is seen at the level of $25,367, which is the game changing level, but for a valid breakout, the daily candle must close above this level. The level of $21,867 will now act as a technical support for bulls. The larger time frame outlook for Bitcoin remains bearish, however, we have unconfirmed Bullish Engulfing pattern on the Daily time frame chart, so please stay focused and keep an eye on the key technical levels.

Weekly Pivot Points:

WR3 - $23,780

WR2 - $22,629

WR1 - $22,245

Weekly Pivot - $21,487

WS1 - $21,094

WS2 - $20,326

WS3 - $19,175

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 at the psychological level of $20,000 had been violated, the new swing low was made at $17,600 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367.