FX.co ★ Technical Analysis of BTC/USD for September 7, 2022

Crypto Industry News:

Liz Truss, Britain's new prime minister, has spoken out about the past on cryptocurrencies. For example, she once said that "we should welcome cryptocurrencies in a way that does not limit their potential." Now she defeated former Chancellor of the Treasury Rishi Sunak, who had a plan to make Britain a cryptocurrency-friendly country in the struggle for power.

Liz Truss won the race for the position of the new British Prime Minister, beating former Chancellor of the Treasury Rishi Sunak. The foreign minister has so far won leadership in the Conservative Party, but will eventually replace Boris Johnson as head of government. Johnson will meet Queen Elizabeth today to formally submit his resignation. The Queen then appoints Truss as Britain's new Prime Minister. Truss, 47, has promised to act quickly to beat the inflation that is currently eating away at the pound's value.

"I will take bold steps to guide us all through these difficult times, develop our economy and unlock the UK's potential," she wrote on Monday on Twitter.

In contrast, Sunak has openly stated that his goal is to make the UK a cryptocurrency and blockchain hub in the region.

"My ambition is to make the UK a global cryptocurrency asset technology hub, and the measures we presented today will help ensure that companies can invest, innovate and thrive in this country," he said a few months ago.

Technical Market Outlook:

The BTC/USD pair had broken out from the narrow consolidation zone and made a new swing low at the level of $18,553. The market conditions are now extremely oversold on the H4 time frame chart, so an intraday bounce is expected towards the level of $18,940. The main trend remains down and the next target for bears is located at $17,600.

Weekly Pivot Points:

WR3 - $20,411

WR2 - $20,111

WR1 - $19,911

Weekly Pivot - $19,840

WS1 - $19,610

WS2 - $19,509

WS3 - $19,209

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues without any indication of a possible 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.