BTCUSD Weekly Outlook and Bitcoin Fundamentals, 16th September 2022
This trading week’s attention for the Indian brokers was on the CPI data, released with 0.1% above the previous month’s reading and it led to another round of sell-off immediately where bitcoin lost about 6% of its value in 2mintues.
The report shows that the inflation level came out higher than expected and the reaction of the market participants and Indian brokers has put the buy signal for the week at risk.
BTCUSD Technical Analysis
Monthly Resistance Levels: 69K, 40K, 25K.
Monthly Support Levels: 18K, 17K, 10K
The BTCUSD pair has dropped lower for the past 10 months from its recent ATH on the monthly chart. The bitcoin price may create another low if the price can breakout below the support level of 17K. A breakout will take the price to a new low of 10K if the Bulls fail to hold the zone.
However, a breakout above scenario can also happen if the Buying momentum can close above the 25K level if the price fails to close below the 17K psychological zone.
Weekly Resistance Levels: 32K, 25K.
Weekly Support Levels: 18K, 17.5K.
The Indian brokers in the short position may be in the final round of the selling market as the weekly chart shows that the price is near the bottom of the chart around the support zone of $18K. Some analysts expect that the Bulls should take over the zone as the ATH of 2017 should support the market’s current state.
From Glassnode analysis, the market should be in a state of capitulation where the coins purchased near the top of a cycle are sold and change hands at lower prices. Despite the 10 months of bearish run on the bitcoin market, the capitulation crossover stage has not been reached but the trajectory of the market projects that it will soon happen from mid-September and it will take about 145 to 340 days for the market to recover.
Daily Resistance Levels: 24000K, 22500K.
Daily Support Levels: 19000K, 18500K.
The Buyer’s run was met by resistance around the 22000K zone after the US session began with disappointing data on CPI and it affected the gains of the Buyers after holding its zone for days.
The Cryptocurrency market and other financial markets are going through various challenges because of the unexpected high inflation data. This outcome is a signal for the Fed that will influence them to increase the next interest rate to 100 basis points during their next FOMC meeting or they likely extend the tightening of their monetary policy cycle.
For the bullish scenario to continue in the bitcoin market, the support zone of 18000K will have to hold and reject the selling pressure. Also, the lack of inflow and trading volume into the market is affecting the buying momentum, the crypto market needs bullish participants to drive the trend upwards.
The Indian brokers will continue to dominate the BTCUSD pair at the retest of every resistance until the market bias can break out above the resistance zones in the market. However, if the price closes below the support zone of 18000K it will bring pressure on the Buyers for the bearish scenario to continue.
BITCOIN NEWS EVENTS
WALL STREET GIANTS PLANS TO LAUNCH CRYPTO EXCHANGE
Some Wall Street giants like Charles Schwab, Fidelity, Citadel, and others plan on launching a cryptocurrency exchange soon and it will be called EDX Markets. The EDXM service will provide services for institutional investors and retail investors also.
Through their platform, it will be the first within the centralized crypto exchanges to facilitate trading through trusted intermediaries to provide the best price among the liquidity providers.
The EDXM has the backing of consortium brokers, global market makers and venture capital firms, and also Fidelity Digital Assets which is also heading the list of firms backing the Exchange. Fidelity Digital Assets is one of the best firms in providing cryptocurrency custody and trading platform services to institutional investors.
Charles Schwab firm is not on wall street itself but it is recognized for its significance in the financial market. Other multinationals like the market marker firms Citadel Securities, Virtu Financial, Sequoia Capital, and Venture Capital firms are present partners with EDX Markets and more firms are expected to partner with them in the future.
The EDX Market sees the cryptocurrency industry as a $1 trillion global asset class that has over 300 million participants. For more participation in the market, it requires a platform with compliance and security standard that can meet the global demands of BTC users.
Jamil Nazarili a former Citadel executive will be the EDXM’s CEO, while Tony Acuna-Rohter a former CTO of ErisX will sever as EDX Markets CTO and other members of other firms will have other roles to play in the company and on the EDXM’s board of directors. The launched data is yet to be announced to the general public.
BTCUSD Conclusion and Projection
The Cryptocurrency is expected to retest the 18000-dollar zones if the sellers can push the price lower. However, the 18000-dollar level is another zone that the buyers will be relying on for a breakout to the upside if they can reject the selling pressure.
The recent CPPI data is of concern to traders, investors, and Indian brokers as bitcoin has failed to become the hedge against inflation in recent times. If the buying momentum can resume, we may see the price rise again towards the 22000 level.