Technical Analysis of BTC/USD for October 18, 2023
October 18, 2023 9:23 am
Crypto Industry News:
Cryptocurrency investors in Europe are not yet protected by the European Union’s cryptocurrency market regulations, and it will be some time before this protection comes into effect.
On October 17, Europe’s securities regulator, the European Securities and Markets Authority (ESMA), issued a statement regarding the transition to European cryptocurrency regulation known as the Markets in Cryptocurrency Assets Regulation (MiCA).
ESMA emphasized that investor protection based on MiCA will not come into force until at least December 2024, which means that investors must be prepared to lose all the funds they intend to invest in cryptocurrencies:
“Cryptocurrency asset holders and clients of cryptocurrency asset service providers will not benefit from any EU regulation and supervision during this period, such as the ability to submit official complaints to their Competent National Authorities against cryptocurrency asset service providers.”
Even after December 2024, there is no guarantee that investors will be fully protected by MiCA until 2026. After MiCA becomes applicable to cryptocurrency asset service providers at the end of 2024, member states still have the option to grant cryptocurrency service providers an additional 18 months.
“This means that holders of cryptocurrency assets and clients of service providers related to cryptocurrency assets may not benefit from the full rights and protections provided for them in MiCA until July 1, 2026,” ESMA wrote. Most Competent National Authorities will have limited powers to Supervise those who benefit from the transition period, depending on local regulations.
“In most cases, these powers are limited to those available under existing anti-money laundering regimes, which are much less comprehensive than MiCA,” ESMA added.
Retail investors must be aware that there will be no such thing as a safe cryptocurrency asset, even after the introduction of MiCA.
ESMA’s latest warnings come shortly after the regulator issued a second consultation paper on MiCA on October 5, following the introduction of the regulations in June 2023.
Technical Market Outlook:
The BTC/USD pair has spiked up to the level of $30, 540 recently and the bulls keep trying to move up towards this level again. The spike up was faded quickly and BTC trades back around the level of $28,000 again. The intraday technical support is seen at $28,079 and the intraday technical resistance is seen at $28,829. 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 – $28,998
WR2 – $28,237
WR1 – $27,961
Weekly Pivot – $27,478
WS1 – $27,202
WS2 – $26,719
WS3 – $25,960
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.
The material has been provided by InstaForex Company – www.instaforex.com
Crypto Industry News:
Cryptocurrency investors in Europe are not yet protected by the European Union’s cryptocurrency market regulations, and it will be some time before this protection comes into effect.
On October 17, Europe’s securities regulator, the European Securities and Markets Authority (ESMA), issued a statement regarding the transition to European cryptocurrency regulation known as the Markets in Cryptocurrency Assets Regulation (MiCA).
ESMA emphasized that investor protection based on MiCA will not come into force until at least December 2024, which means that investors must be prepared to lose all the funds they intend to invest in cryptocurrencies:
“Cryptocurrency asset holders and clients of cryptocurrency asset service providers will not benefit from any EU regulation and supervision during this period, such as the ability to submit official complaints to their Competent National Authorities against cryptocurrency asset service providers.”
Even after December 2024, there is no guarantee that investors will be fully protected by MiCA until 2026. After MiCA becomes applicable to cryptocurrency asset service providers at the end of 2024, member states still have the option to grant cryptocurrency service providers an additional 18 months.
“This means that holders of cryptocurrency assets and clients of service providers related to cryptocurrency assets may not benefit from the full rights and protections provided for them in MiCA until July 1, 2026,” ESMA wrote. Most Competent National Authorities will have limited powers to Supervise those who benefit from the transition period, depending on local regulations.
“In most cases, these powers are limited to those available under existing anti-money laundering regimes, which are much less comprehensive than MiCA,” ESMA added.
Retail investors must be aware that there will be no such thing as a safe cryptocurrency asset, even after the introduction of MiCA.
ESMA’s latest warnings come shortly after the regulator issued a second consultation paper on MiCA on October 5, following the introduction of the regulations in June 2023.
Technical Market Outlook:
The BTC/USD pair has spiked up to the level of $30, 540 recently and the bulls keep trying to move up towards this level again. The spike up was faded quickly and BTC trades back around the level of $28,000 again. The intraday technical support is seen at $28,079 and the intraday technical resistance is seen at $28,829. 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 – $28,998
WR2 – $28,237
WR1 – $27,961
Weekly Pivot – $27,478
WS1 – $27,202
WS2 – $26,719
WS3 – $25,960
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.
The material has been provided by InstaForex Company – www.instaforex.com
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