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BTCUSD Weekly Outlook and Bitcoin Fundamentals, 5th May 2022


Crypto brokers in India welcome the recent step taken by the SEC to tackle frauds in the crypto market as a means of protecting innocent investors according to the chairman of SEC Gary Gensler. 

The Securities and Exchange Commission is ready to crack down on the criminal activities in the digital asset market.

BTCUSD Technical Analysis

Monthly Chart

BTCUSD monthly chart - 5th May 2022

Monthly Resistance Levels: 69000, 59117, 48238.

Monthly Support Levels:   39600, 28900

The bullish momentum that is building at the beginning of this new month is not a strong indication for the Bulls to dominate the market. The bears closed the market in April engulfing the previous month, this shows that the Indian brokers with a short position are likely going to take the price of bitcoin lower into the lower level of 36500 and below if the momentum is strong for the bears.

Recently, Paul Jones says “that the no border qualities of cryptos are very attractive” and stated that he could alter his modest allocation of cryptos in the future. 

He also states that as the Federal Reserve fights inflation, the crypto future is bright depending on the government moves and the cost of owning inflation hedges such as crypto, gold, etc. will be significant with a hike in an interest rate at 2.5% by September.

The Fed’s meeting on inflation will reflect on the cryptocurrency market when the news is released during the trading week. We may get a bounce up from the support zone or we see another test of the lower lows.

Weekly Chart

BTCUSD weekly chart - 5th May 2022

Weekly Resistance Levels:  52500, 48500.

Weekly Support Levels:  37000, 28600, 34000

The bearish momentum continues to dominate the BTCUSD pair as Indian brokers with short positions to the advantage of the evening star candle some weeks back to push the price of bitcoin down. The price is around the support zone of 37000 and the levels are psychological zones for the market participants. 

A breakout below will see the short position Indian brokers open more positions for a lower low. However, a close above the resistance zone of 48240 will reverse the cryptocurrency market into a bullish trend.

Daily Chart

Daily Resistance Levels:  48234, 43000, 50000. 

Daily Support Levels:  37300, 34000, 36000.

The Indian brokers may likely push the BTCUSD price lower into the deep part of the support zones as the downtrend continues on the daily chart. The sellers dominating the cryptocurrency market of BTCUSD will retest the 36000 level if the sentiments remain bearish on the time frame. 

However, the cryptocurrency market will be preparing for the Federal Reserves Meeting coming up soon as investors and Indian brokers will not want to be on the wrong side of the market when press statements are made. The news may break support zones for the price to drop lower or we may see the price of bitcoin jump from the support zones when the press release is done.

Bullish Scenario:

A bullish scenario may happen sooner if the zone keeps rejecting the price as it tries to go lower to the support level of 37000. If we see a major bullish reversal candlestick like a hammer or bullish engulfing patterns, the price of BTCUSD is ready to go up.

Bearish Scenario:

The BTCUSD short position traders dominated the crypto market and the Indian brokers short the market all through April. If the momentum can increase in this new month the trend may take the price to another deep of the market if like the 35000 level.

Bitcoin BTC News Events 


According to the chairman of the Securities and Exchange Commission, Gary Gensler, he said that the commission is ready to crack down on criminal activities happening in the cryptocurrency space. As they need to protect investors and Indian brokers, as well as digital assets, have become more accessible to the general public.

The chairperson is committed to dedicating more resources to protect the investor and the chief regulator of wall street announced that 20 new positions are allocated to its crypto Assets and Cyber unit making it 50 dedicated posts to helping investors to identify crypto-related crimes and press charges against those responsible.

The Unit will focus on those violating the laws related to coin offerings, exchanges, products, NFTs, DeFi, stablecoins, and lending and staking among others.

Conclusion and Projection

Cryptocurrency traders, investors, and Indian brokers will be paying attention to the Federal Reserves Committee as they plan to control inflation in the market. The price of BTCUSD is struggling to pass the previously established support zones. 

The Bears still control the market as they push the price lower to break out below the support zone for the trend to continue its downwards movement. Rejections of the bears will bring a reversal of the trend.

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