FX.co ★ Technical Analysis of BTC/USD for July 20, 2023

Crypto Industry News:

Brian Armstrong, CEO of U.S. cryptocurrency exchange Coinbase, plans to meet with members of Congress to discuss digital asset legislation and related issues.

Armstrong is scheduled to meet with the New Democrat Coalition, a group of about 100 Democrats in the House of Representatives who focus on promoting "innovative, inclusive and future-proof policies." Coinbase's CEO is reported to be speaking to lawmakers about digital asset legislation and the technology's potential impact on national security, privacy, and climate.

The meeting, which is scheduled to take place behind closed doors on July 19, will come as various proposals for regulating the cryptocurrency space are being considered in the House of Representatives and Senate. On July 12, Senators Cynthia Lummis and Kirsten Gillibrand re-introduced a bill to create a comprehensive legal framework for digital assets, while members of the House Financial Services Committee are currently considering a market structure bill.

Coinbase is currently in a legal dispute with the U.S. Securities and Exchange Commission over allegedly illegal securities offerings. The first preliminary hearing between the two parties was held on July 13.

Technical Market Outlook:

The BTC/USD pair has briefly made a new swing high and yearly high at the level of $31,740 and then pulled-back from the extremely overbought market conditions on the H4 time frame chart. The market wend down to test the key short-term technical support seen at the level of $29,623. So far the bulls are bouncing up from the level, but in a case of a breakout lower, the next target is located at $28,446 (this level will work as the technical support and the line in sand for bulls). The intraday technical resistance is seen at the level of $30,447. The momentum is neutral which is a good indication for bulls as any breakout above the level of fifty would trigger another leg to the upside targeting the intraday technical resistance seen at $30,447.

Weekly Pivot Points:

WR3 - $30,637

WR2 - $30,432

WR1 - $30,347

Weekly Pivot - $30,227

WS1 - $30,141

WS2 - $30,021

WS3 - $29,816

Trading Outlook:

The bulls broken above the gamechanging level located at $25,442, so now the mid-term outlook for BTC is bullish. The last pull-back has reached the 38% Fibonacci retracement and the market is ready to continue the up move. 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.