FX.co ★ Technical Analysis of BTC/USD for February 27, 2023

Crypto Industry News:

During an interview with a leading American daily, the chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, stated that all cryptocurrencies are securities and fall under the jurisdiction of his commission. The exception is bitcoin.

The new statement by the SEC chairman leaves no more room for ambiguity. It may also mean the beginning of problems for projects such as Ethereum.

Gensler pointed out that behind all cryptocurrencies - apart from BTC - there are "groups of entrepreneurs" who have their "legal entities", often registered in "tax havens". In his opinion, this is enough to recognize almost all tokens and cryptocurrencies as securities.

Of course, the matter is and will be controversial. It is worth considering what, according to US law, a security is. Anyway, the head of the SEC himself had doubts for several years. In 2021, Gensler was asked several times whether ETH is a security. He did not want to clearly answer this question. What may be surprising in this context, however, stablecoins in his eyes are also securities.

SEC attacks on the cryptocurrency market intensified shortly after the collapse of the FTX exchange. The case even took on a political character, as many politicians accused Gensler of puzzling tardiness regarding this platform. The effect of the actions of officials may also be an attack on the cryptocurrency market and an attempt to marginalize them. This may be a more cunning policy than China, which introduced a total ban on digital assets, but it is rather doomed to failure (which is also shown by the case of the Middle Kingdom, which is slowly withdrawing from its ban).

Technical Market Outlook:

The BTC/USD pair has retrace 61% of the last wave up over the weekend and no now are trying to bounce from the level of $22,755. The market still trades below the 50 and 100 MA, but the bulls managed to test the intraday technical resistance seen at the level of $23,600. Any breakout above this level will open the road towards the 50 and 100 MA ( for a test as well). Please notice the momentum is neutral, but bounced strongly from the oversold conditions on H4 time frame chart, which supports the short-term bullish outlook for BTC.

Weekly Pivot Points:

WR3 - $24,000

WR2 - $23,709

WR1 - $23,535

Weekly Pivot - $23,417

WS1 - $23,234

WS2 - $23, 126

WS3 - $22,835

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.