FX.co ★ Technical Analysis of BTC/USD for March 6, 2023

Crypto Industry News:

The recently launched internal digital currency of the Indian Central Bank (CBDC) - digital rupee - is currently being tested for offline functionality, revealed by Ajay Kumar Choudhary, executive director of Reserve Bank of India (RBI).

RBI - Reserve Bank of India and regulatory body - launched on November 1, 2022, piloting wholesale segment for a digital rupee, introducing 50,000 users and 5,000 sellers for testing in the real world. As at February 25, about $ 134 million and 800,000 transactions were carried out via wholesale CBDC.

Based on this progress, Choudhary said that RBI was looking at the functionality of offline CBDC. In an interview with CNBC TV18, he stated that RBI was assessing the potential of CBDC in the field of cross -border transactions and connections with older systems in other countries.

Technical Market Outlook:

The BTC/USD pair has failed to break above the 50 MA on H4 time frame chart ($23,885), reversed lower and after a short period of a horizontal trading inside a narrow range seen between the levels of $23,044 - $23,885 the bears spiked to the downside. The same situation seems to be continued currently as the market is trading inside a narrow zone again. The intraday technical support is seen at the level of $22,166 and $22,000. The market is now developing the corrective cycle to the downside and the weak and negative momentum on the H4 time frame chart supports the short-term bearish outlook.

Weekly Pivot Points:

WR3 - $22,812

WR2 - $22,582

WR1 - $22,470

Weekly Pivot - $22,352

WS1 - $22,240

WS2 - $22,122

WS3 - $21,892

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.