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

Crypto Industry News:

The second largest stock exchange in the world focuses on development in the digital asset sector. All this in the hope of taking advantage of the growing interest in space on the institutional market. According to a Bloomberg report, Nasdaq Digital Assets will initially only launch custody services for Bitcoin and Ethereum. Gemini Ira Auerbach will lead the new arm of the company, and the department is expected to grow to 40 people by the end of 2022.

Nasdaq has already applied to offer digital asset storage services with the New York Department of Financial Services. The document is currently pending approval. If NYDFS approves the application, Nasdaq will become a serious rival to companies like Coinbase and Anchorage Digital. It will also face competition from BNY Mellon and State Street. These two giants of the traditional financial world have also decided to enter the world of cryptocurrencies.

The cryptocurrency industry had a difficult year 2021 - Bitcoin, Ethereum and most other major assets fell by more than 70% from last year's highs. Wall Street, however, is increasingly interested in the market, citing the growing demand from institutional clients for Bitcoin and other cryptocurrencies. Blackrock, the world's largest asset management company, teamed up with Coinbase and launched a Bitcoin Spot trust fund last month to help its wealthy clients gain access to cryptocurrencies.

Technical Market Outlook:

The BTC/USD pair had bounced from the recent low made at the level of $18,239, however the bounce was very shallow and the market keeps trading around the level of $19,000. The levels of $18,640 and $18,563 will now act as the technical support and the nearest technical resistance is seen at the level of $19,347 and $19,679. The weak and negative momentum on the H4 time frame chart still supports the short-term bearish outlook towards the level of $17,600 again.

Weekly Pivot Points:

WR3 - $21,295

WR2 - $20,039

WR1 - $19,341

Weekly Pivot - $18,764

WS1 - $18,064

WS2 - $17,526

WS3 - $16,271

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.