02.08.202208:42 Forex Analysis & Reviews: Technical Analysis of BTC/USD for August 2, 2022

Crypto Industry News:

The Israeli government has taken the next step with a campaign launched in 2019 with the ultimate goal of completely eliminating cash and moving to electronic payments. As of today (August 1), the Israeli authorities have introduced further restrictions on cash payments. This includes all cash transactions in excess of 6,000 Israeli shekels (ILS) or approximately US $ 1,760 equivalent for business transactions and payments above 15,000 shekels (ILS) ($ 4,400) for personal transactions.

The representative of the Israeli tax office, Tamar Bracha, assured in an interview with Media Line that the procedure of limiting cash payments "increases the difficulties in criminal activity."

In the context of the topic, it is worth adding that Israel is one of the few countries that started testing CBDC with great enthusiasm. In May this year, the Bank of Israel admitted that, according to its "public consultation", plans to introduce a digital shekel have strong public support. According to experts and interviewed citizens, CBDC could significantly improve the financial and monetary stability of the country and solve many legal and technological issues.

Israel is also in the process of drafting a digital asset regulation. At this year's Israel Crypto Conference in May, Jonathan Shek of Oz Finance admitted that Israeli authorities are preparing a "comprehensive and holistic" regulatory framework for all cryptocurrencies. However, he did not provide the exact date, but assured that the regulations were a matter of "the near future".

Technical Market Outlook:

The BTC/USD pair continues to drop from the last high located at $24,664 and just made a new local low at the level of $22,777. The intraday technical support is seen at $22,507. The momentum is now weak and negative on the H4 time frame chart, so a deeper correction towards the level of $22,000 is possible before the bulls will wake up and start buying again. Please notice, the Bitcoin market keeps moving inside the ascending channel, so the bullish impulsive wave scenario to the upside is now invalidate. If there is no sustained breakout from the channel, the bears might accelerate the sell-off and test the swing low seen at the level of $17,600 again.

Weekly Pivot Points:

WR3 - $23,739

WR2 - $23,529

WR1 - $23,421

Weekly Pivot - $23,319

WS1 - $23,211

WS2 - $23,110

WS3 - $22,900

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues without any indication of a trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support at the psychological level of $20,000 had been violated, the new swing low was made at $17,600 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout.