FX.co ★ Technical Analysis of BTC/USD for July 21, 2022

Crypto Industry News:

Stablecoins backed by fiat currencies will soon become a legal form of payment in the UK. The regulators will introduce a new law on their use into the parliament of this country.

The long-awaited project on financial services and markets will be endorsed today by British Finance Minister Nadhim Zahawi.

One of the aims of the act is to reap the benefits of Brexit and restructure the UK financial services industry. The law is expected to help the nation develop a more competitive financial services sector after leaving the EU.

In addition to providing funds to those in need and access to finance in rural areas, the act aims to combat other types of cryptocurrency theft.

The British government has previously acknowledged that digital resources will play a significant role in the national economic competitiveness strategy post-Brexit.

In April, the UK Treasury unveiled a number of initiatives to transform the country into a global cryptocurrency hub. New regulations have been announced that will allow users to use stablecoins as a payment method.

The proposed act is a response to the State Treasury's commitment to examine the legal status of DAO and create a market infrastructure for crypto entrepreneurs in 2023.

Technical Market Outlook:

The BTC/USD pair rally had been capped at the level of $24,264 after the bulls hit the upper channel line and the Pin Bar candlestick pattern was made. The level of $21,867 will now act as a technical support for bulls, however, 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 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.