FX.co ★ Technical Analysis of BTC/USD for May 17, 2023

Crypto Industry News:

The Economic and Financial Affairs Council of the European Union, made up of finance ministers from all member states, has given the green light to the long-awaited Regulation on Crypto Asset Markets (MiCA).

Finance ministers from 27 Member States voted in favor of the law and amendments to several regulations and directives relating to the new rules.

Two more pieces of legislation, including a regulation on information accompanying transfers of funds and certain cryptographic assets, were also adopted by the European Parliament in connection with the adoption of MiCA.

The European Parliament formally adopted the MiCA legislation on April 20. It thus paved the way for final approval by the European Council before the regulatory parameters come into force.

The regulation sets out clear regulatory guidelines and requirements for the use of cryptocurrencies and related services and activities throughout the European Union. The scope of the regulations covers a range of cryptocurrencies, digital assets, utility tokens and stablecoins.

The next step for MiCA to become EU law is the publication of the draft law in the Official Journal of the European Union. The law will come into force within a year, which means that the provisions will finally become law in mid-2024.

Technical Market Outlook:

The BTC/USD pair has reversed from the 50 MA located at the level of $27,550 and is heading lower towards the level of $26,856. Any violation of this level would indicate more bearish pressure with a target seen at the level of $26,600 and $25,834 (swing low). The intraday technical resistance is located at $27,453 (50 MA) and $27,670.

The bigger time frame correction is more complex and time-consuming, however the bulls are still trying to increase the volatility and break above the intraday technical resistance seen at $30,004. Only a sustained breakout above this level might change the outlook to more bullish, otherwise the market remains in corrective mode and horizontal trend to be continued. The recent 7% bounce from the lows is not enough to trigger the trend reversal.

Weekly Pivot Points:

WR3 - $28,631

WR2 - $27,903

WR1 - $27,652

Weekly Pivot - $27,176

WS1 - $26,924

WS2 - $26,445

WS3 - $25,721

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.