FX.co ★ Technical Analysis of BTC/USD for April 18, 2023

Crypto Industry News:

On Wednesday, the US House of Representatives will meet to discuss a bill to regulate the country's stablecoin sector. The project entitled "Understanding the role of stablecoins in payments and the need for legislation" also contains a controversial provision.

Before the weekend, the US House of Representatives Financial Services Committee published a bill to regulate the stablecoin market. There will be a hearing on Wednesday. During it, members of the subcommittee on digital assets, financial technologies and integration will debate the postulates contained in the document.

The 73-page bill is titled Understanding the Role of Stablecoins in Payments and the Need for Legislation. It assumes, above all, greater supervision over this financial sector. This follows the collapse of the algorithmic stablecoin UST from Terraform Labs in May last year. The depeg of this stablecoin started the disaster of the Terra ecosystem, as a result of which investors suffered losses totaling $40 billion.

The act would require stablecoin issuers to hold reserves in a 1:1 ratio. They could be in the form of US dollars, Treasury bills with a maturity of up to 90 days, or Federal Reserve reserve deposits. The functioning of the cryptocurrency model, such as USDT from Tether, USDC from Circle, or BUSD from Binance, is included in the conditions set out in the act.

Those who will speak on Wednesday on the proposed legislation include Circle CSO Dante Disparte and Blockchain Association policy director Jack Chervinsky. It is worth noting that someone from this environment was finally allowed to participate in the issue of cryptocurrency legislation. There have been many cases where the regulation of digital assets is decided by people completely ignorant of the nature of cryptocurrencies.

Technical Market Outlook:

The BTC/USD pair has made a new yearly high at the level of $30,909 and after a short period of consolidation, the market started to pull-back from the highs and just recently tested the key short-term technical support located at the level of $29,184. The intraday technical support seen at the level of $29,679 was broken and will act as the intraday technical resistance together with intraday technical resistance seen at $30,503. When the pull-back is completed, then the up trend should resume as there is still some room to the upside for bulls with next target seen at the level of $32,370.

Weekly Pivot Points:

WR3 - $31,204

WR2 - $30,606

WR1 - $30,290

Weekly Pivot - $30,007

WS1 - $29,682

WS2 - $29,409

WS3 - $28,811

Trading Outlook:

The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The next target for bulls is seen at the level of $32,350. As long as the level of 19,572 is not clearly violated, there is a chance for a long-term up trend to continue.