FX.co ★ Technical Analysis of BTC/USD for November 8, 2022

Crypto Industry News:

At the end of September, Meta employed over 87,000 employees, many of whom work in the metaverse department. Now the company is reportedly planning "large-scale layoffs." All because of rising costs and the recent decline in stock prices.

Internet media, citing people familiar with the case, claim that the planned layoffs may affect many employees. It is currently unknown whether the Reality Labs division, which recorded a loss of as much as $ 3.7 billion in the third quarter, will also see staff cuts.

Last week, Meta CEO Mark Zuckerberg said the company will focus its investments on "a small number of high-priority areas" including the Discovery Engine, advertising and business communication platforms.

"It means that some teams will develop significantly, but most others will remain the same or shrink next year (...)" - he announced.

He added that he believes that the company is "on the right track" when it comes to investments and should "continue to work intensively in these areas".

Technical Market Outlook:

The BTC/USD pair made a new local high at the level of $21,471 and then the bears pushed the market below the demand zone again (pink rectangle on the H4 time frame chart). During this aggressive and dynamic sell-off BTC lost almost 10% and hit the local low at the level of $19,731. The level of $19,942 and $20,034 will now act as the intraday technical resistance for bulls.

Weekly Pivot Points:

WR3 - $21,429

WR2 - $21,125

WR1 - $20,930

Weekly Pivot - $20,825

WS1 - $20,629

WS2 - $20,524

WS3 - $20,222

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.