FX.co ★ Technical Analysis of BTC/USD for October 24, 2022

Crypto Industry News:

The CFTC (Commodity Futures Trading Commission) and the Securities Exchange Commission (SEC) are two regulatory agencies in the US that have been the subject of much debate about who should oversee the cryptocurrency market and illegal activities related to the industry.

It is well known that the SEC wants full control over the oversight of virtual assets such as digital and stablecoins.

For its part, the CFTC also wants the same level of regulatory powers. This would entail strengthening its control over some financial instruments, and at the same time it would have the possibility of increasing the revenue of the office.

According to a statement released by the CFTC on October 20, the Legal Enforcement Division had 82 recorded activities this year, 18 of which were related to cryptocurrencies.

In percentage terms, the digital asset class accounted for over 20% of all filings made by the CFTC this year.

Commissioner Rostin Benham, commenting on the development of the situation, said:

"This report shows that the CFTC continues to aggressively oversee new digital asset markets with all the tools available." I.

Among the actions taken by Benham's office this year was the filing of a lawsuit against bZeroX DAO investigating the manipulation of the native Digitex Futures token and an alleged $ 1.7 billion fraud.

The CFTC has also imposed its sanctions in the event of failure to register a Designated Contract Producer (DCM), a Futures Commissioner (FCM) and a Swap Execution Facility (SEF).

Subsequently, Benham confidently expressed his readiness to regulate the plight of cryptocurrencies as preparations to be a fully funded regulator of this particular industry are already underway.

Technical Market Outlook:

The BTC/USD pair has broken above the local trend line resistance around the level of $19,400, however, there is still missing one more wave to the downside in order to complete the Falling Wedge pattern. Nevertheless, the market made a Shooting Star candlestick pattern at the level of $19,678 and is currently testing the broken trend line from above. The nearest technical support is seen at $19,248 and $19,078, however, the target for bears is the swing low and range low seen at the level of $18,150. The supply zone located between the levels of $20,221 - $20,580 (marked as a red rectangle) is very important for bulls from a technical point of view, because only a sustained breakout above it would change the outlook to more bullish, so please keep an eye on this zone for a possible breakout towards the next target seen at $22,410.

Weekly Pivot Points:

WR3 - $20,025

WR2 - $19,682

WR1 - $19,461

Weekly Pivot - $19,340

WS1 - $19,119

WS2 - $18,997

WS3 - $18,655

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 in the long term.