FX.co ★ Technical Analysis of BTC/USD for May 27, 2022

Crypto Industry News:

The crypto community has sharply criticized Christine Lagarde, President of the European Central Bank (ECB), for her recent comments on cryptocurrencies.

As the cryptocurrency markets are showing signs of stagnation, Lagarde has reminded the world of her position on cryptocurrencies. According to her, cryptocurrencies are "worth nothing" because the assets "are not based on anything." Additionally, she expressed concern about those who invest in cryptocurrencies and called for regulation.

By responding to these comments, the crypto community expressed its feelings. Sheila Warren, CEO of the Crypto Council for Innovation, wrote that she was disappointed but not surprised to hear these comments. According to Warren, "the new digital economy will run on a combination of digital currencies, including cryptocurrencies, stablecoins and CBDC."

Crypto analyst Lark Davis also took the opportunity to respond to Lagarde's comments. Quoting the ECB president, Davis tweeted that instead of describing crypto, she simply "described the euro" because it is "printed from the air."

By sharing a video showing Lagarde admitting that her son traded cryptocurrencies, user Byzantine General called her a dinosaur. He wrote on Twitter: "How those dinosaurs don't realize it's over for them. Why fight the future until your last breath?".

Earlier this year, the European Commission announced that it was preparing a digital euro proposal for 2023. The ECB is expected to have a prototype by the end of 2023 and, if all goes well, could be issued in 2025.

Technical Market Outlook:

The BTC/USD pair is still trading inside the range, however the last push lower resulted with the Pin Bar candle stisk as the bearish pressure intensify. The weak and negative momentum supports the short-term bearish outlook with a new target for bears seen even at the level of $20,000. The market keeps making lower lows and lower highs on the H4 time frame chart, so the down trend is intact. The first indication of the deeper correction would be a clear breakout above the range high located at the level of $32,870.

Weekly Pivot Points:

WR3 - $33,847

WR2 - $32,649

WR1 - $31,169

Weekly Pivot - $29,902

WS1 - $28,296

WS2 - $27,028

WS3 - $25,668

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues. 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 is seen at the round psychological level of $20,000.