FX.co ★ Technical Analysis of BTC/USD for February 8, 2023

Crypto Industry News:

UK bank bosses are blocking customers from accessing crypto assets over concerns about fraud and volatility, lawmakers have been told today.

Social media and technology platforms have been identified as a significant source of fraud. However, directors told the Treasury Committee that the new rules could boost confidence.

"As a bank, we have taken a pretty hard line on cryptocurrencies. We are blocking retail and affluent clients from switching to crypto assets due to the volatility and stability of the platform. We are looking at this from a scam perspective. It's their money - but if we show serious fraud, we'll block them," Alison Rose, chief executive of NatWest Group, told the House of Commons committee.

She pointed to the need to "stop it at the source", citing statistics showing that 60% of customers who fall victim to the scam come from social media or technology platforms.

Other executives interviewed by the committee were also skeptical about cryptocurrencies. However, they saw potential in the new rules proposed for the sector by the UK Treasury last week.

Technical Market Outlook:

The bullish rally was capped at the level of $24,258 after the Shooting Star candlestick pattern was made on the Daily time frame chart and the market reversed towards the middle of the old trading range. A breakout above the level of $25,000 on BTC/USD is still needed in order to extend the rally towards the key mid-term technical resistance seen at $25,442, so there is still a room to the upside for bulls. The key short-term technical support is located at $22,523 and $22,308. On the lower time frames, like H4, the bulls bounced from the technical support located at the level of $22,522 and tested the short-term trend line resistance (rejection). The key short-term technical support is seen at the level of $22,308.

Weekly Pivot Points:

WR3 - $22,820

WR2 - $22,768

WR1 - $22,745

Weekly Pivot - $22,715

WS1 - $22,693

WS2 - $22,663

WS3 - $22,610

Trading Outlook:

Despite the recent rally, 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 gamechanging level for bulls is located at $25,442 and it must be clearly violated for a valid breakout in the longer term.