FX.co ★ Technical Analysis of BTC/USD for August 30, 2022

Crypto Industry News:

Founder and Investment Director of Cyber Capital Cryptocurrency Fund Justin Bons called Bitcoin (BTC) "technically one of the worst cryptocurrencies" and "purely speculative asset without utility" compared to other cryptocurrencies due to the lack of technological advancement.

Bons added his opinion in an 11-part Twitter thread on Sunday, stating that Bitcoin's value proposition has long been deteriorating due to a broken long-term security model, relatively weak economic features, and a lack of capability, programmability, and composing.

Bons has been an expressive figure in the crypto community for several years now, establishing one of the oldest European cryptocurrency funds, Cyber Capital in 2016, and as of 2014 considered a full-time cryptocurrency researcher. In addition, Bons runs nodes on the Bitcoin and Bitcoin Cash networks.

Justin Bons said he vigorously defended BTC in 2014, said "the reality is that BTC has changed dramatically since then," with the decision not to increase the block size limit, "a serious departure from the original vision and purpose. Bitcoin ".

Technical Market Outlook:

The BTC/USD pair has been seen making a pull-back towards the level of $20,716 after the bears had pushed the market out of the channel. The next target for bears is seen at the level of $18,940 (technical support from July 13th) and $18,640 (technical support from July 1st). The momentum remains weak and negative, however, there is a bullish divergence seen on the H4 time frame chart between the price action (last low) and momentum. The larger time frame trend (daily and weekly) remains down until further notice.

Weekly Pivot Points:

WR3 - $20,566

WR2 - $20,144

WR1 - $19,963

Weekly Pivot - $19,722

WS1 - $19,540

WS2 - $19,300

WS3 - $18,878

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues without any indication of a trend termination or reversal. 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 and it must be clearly violated for a valid breakout.