Crypto Industry News:

The UK is actively seeking cryptocurrency market regulation and has proposed many new policies to bring various cryptocurrency markets under the rule of law. However, among the various suggestions proposed, many have noted the request to remove references to Blockchain technology and DLT technology from the definition of crypto assets.

A new report titled "Cryptocurrency Promotions: A Response To Consultation" from Her Majesty's Treasury noted that while most crypto assets use DLT or Blockchain technology as the underlying technology, this could change as the industry evolves. Therefore, crypto assets must be exempted from the DLT reference for the "future definition of innovation".

"Most crypto assets currently use DLT, this could change as technology and industry evolve. The government is therefore proposing to remove the reference to DLT from the definition of qualifying crypto assets," the statement said.

In addition to the controversial redefinition of crypto-assets, the letter from the UK Treasury also discussed the inclusion of decentralized finance (DeFi) in the scope of regulation on a case-by-case basis and added that the government would closely monitor the rapidly growing industry.

By contrast, many cryptocurrency supporters believe that removing references to Blockchain and DLT, as proposed by the commission, could jeopardize the decentralized nature of the cryptocurrency market.

Technical Market Outlook

The BTC/USD pair had broken the key short-term technical support located at the level of $41,695 and made a low at the level of $41,083 and is currently consolidating around the technical support. Any sustained violation of the level of $41,695 will open the road towards the next technical support seen at $40,635 and the 2022 low at $39,555. The level of $40k is getting dangerously close and it might be a last call for bulls to resume the up move before deep and dynamic sell-off below $40k.

Weekly Pivot Points:

WR3 - $50,044

WR2 - $47,124

WR1 - $45,231

Weekly Pivot - $42,290

WS1 - $40,477

WS2 - $37,504

WS3 - $35,607

Trading Outlook:

The complex corrective cycle is still in progress and is much more complex and time-consuming than anticipated. According to the long-term charts the bulls are still in control of the Bitcoin market and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $39,474 is not broken on the daily time frame chart (daily candle close below $39,000 would be considered as a long-term trend change due to the lower low placement).