FX.co ★ Technical Analysis of BTC/USD for October 23, 2023

Crypto Industry News:

The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) has issued a warning to financial institutions regarding efforts to identify "suspicious activity" related to the financing of terrorist groups. In this context, the topic of cryptocurrencies appears.

In an October 20 notice, FinCEN said the Hamas militant group - behind the October 7 attack on Israel - conducted "fundraising campaigns involving virtual currency and fictitious charities collecting both fiat and virtual currency." Anything to finance your business. The government department warned virtual asset service providers and other institutions to "identify and report suspicious transactions" potentially linked to Hamas.

In particular, FinCEN warned financial institutions to be wary of customers who transacted with businesses in a Hamas-affiliated jurisdiction, entities already on the Office of Foreign Assets Control's special list, and entities soliciting cryptocurrency donations on social media. The statement came less than 24 hours after a government department proposed labeling cryptocurrency mixing as a terrorism-related area.

Technical Market Outlook:

The BTC/USD pair has been seen moving towards the last swing high located at $31,790 after the breakout from the consolidation. The new local high was made at the level of $31,008 (at the time of writing the article). The intraday technical support is seen at $28,079 and the intraday technical resistance is seen at $31,790. The strong and positive momentum on the H4 time frame chart supports the short-term bullish outlook for BTC, however the market conditions are now extremely overbought on the H4 time frame chart. Any breakout lower would likely extend the down move on BTC towards the level of $26,031.

Weekly Pivot Points:

WR3 - $32,658

WR2 - $31,572

WR1 - $31,127

Weekly Pivot - $30,486

WS1 - $30,041

WS2 - $29,400

WS3 - $28,313

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.