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BTCUSD Weekly Outlook and Bitcoin Fundamentals, 28th May 2022

Introduction

The best Indian brokers may begin to see the long-term position traders closing out their trades as they see the BTC chart break below the psychological zones to bottom at a new low should the bearish momentum continue. 

Some analysts say that the price may bottom at the $12K or $9K depending on the market forces. Meanwhile, read on to get insights into the price levels we’re currently tracking.

BTCUSD Technical Analysis

Monthly Chart

BTCUSD monthly chart - 27th May 2022

Monthly Resistance Levels: 69K, 50K, 40K.

Monthly Support Levels:   28K, 20K

The bitcoin price has dropped lower from the ATH of $69000 it made sometime last year November and it has reversed about 57% from the initial bullish rally. The bears have been dominating the BTCUSD chart for some months and it has set the cryptocurrency market into an extreme fear territory as the price is about to breakout below a key zone on the monthly chart.

A breakout below will likely take the price to the $20K zone if the greed of the bears is sustained and the fearful quiet their positions. You can notice the rejection of price from the $28K zone on the candlestick of May. If the price continues to experience rejection, the support zone may hold and we may see the long position traders coming to take the price up from the level.

Weekly Chart

BTCUSD weekly chart - 27th May 2022

Weekly Resistance Levels:  50K, 40K, 34K.

Weekly Support Levels:  30K, 28K.

The Indian brokers in the short position took the price down about 25% from the opening position of May 09, 2022 (34000) 2 weeks ago to form a new low before the pullback. The BTCUSD pair has declined rapidly in the past weeks by going below the 2021 support zone of 28K after a while holding the zone for a while. 

Some cryptocurrency analysts say that the long position traders are facing capitulation as some Indian brokers with the long position are depositing their coins into exchanges to sell off their digital assets. If the momentum continues and the price can close below the 28K level we shall see the market continue the bearish run.

Daily Chart

Daily Resistance Levels:  44K, 32K, 50K. 

Daily Support Levels:  19K, 25K.

From the daily chart, the BTCUSD pair has been consolidating after the price pulled away from the support level of 25K on the same day it created the most recent low. The 30K level has now become resistance for the long position traders after the pair entered into a range.

A breakout above the 32K level will take the price higher for the price to retest the 44K resistance zone. Robert Kiyosaki thinks that the price of bitcoin may fall lower and he will wait for the price to drop lower towards the $9K zone before he could enter the cryptocurrency market.

Bullish Scenario:

A bullish scenario that may happen is around the $29K and $30K zones if the support level gets stronger while the zone keeps rejecting the price from the zones. If the Bulls can dominate the zone, we shall see Buyers pushing the price up.

Bearish Scenario:

The Indian brokers on shorting the BTCUSD pair continue to enjoy the profit it has been in the last weeks. The bearish scenario will continue if the price can breakout below the range market for the price to go down.

Bitcoin BTC News Events 

INDIA’S CENTRAL BANK WORRIES!

The recent collapse of cryptocurrencies like Terra Luna, and UST a stablecoin worries the governor of the Reserve Bank of India, Mr. Shaktikanta Das as he was interviewed recently on CNBC TV18 Business news. He stressed the point that they have created an awareness campaign on the crypto market and why the general public should approach it with caution.

The governor does not see any value in the cryptocurrency because of the lack of regulation that undermines the monetary policy, and the financial and macroeconomic stability of the country. The government of India has been working on the legislation of cryptocurrency assets before now and the ministry of Finance has been taking advice from the IMF and world bank on the regulating policy on crypto assets. The Minister of Finance Nirmala Sitharaman disclosed that the cryptocurrency regulation is not an issue to rush into but will need to consider other factors.

Mr. Shaktikanta Das stressed that the introduction and acceptance of cryptocurrency can lead to the dollarization of the country’s economy. He thinks that the Indian authorities are on the same page with them as they show concern about the way the bitcoin, other coins, and stable coins are dropping in value.

India has placed a tax level of 30% on cryptocurrency income and also 1% of the source (TDS) is taxed on cryptocurrency transactions as of July.

Conclusion and Projection

The Federal Reserve chairman of the United State of America will be addressing the committee, Cryptocurrency traders, investors, and Indian brokers concerning the economic condition of the country and the steps they need to take to control the level of inflation. 

Bitcoin BTC price is ranging after the fearful move it did some weeks back. A breakout above or below will determine the direction of the BTCUSD pair in the coming week.



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