The Bitcoin (BTC/USD Pair) Had Made A Local High

Crypto Industry News:

According to the latest news from Reuters, FTX and some of its former officers were indicted in a class action lawsuit on December 28.

They demand a statement that FTX shares are not owned by the company. The same applies to identifiable customer assets held with Alameda.

The lawsuit, which was filed in a Delaware court, mentioned that the now-defunct exchange was "committed to segregating customer accounts." At the same time, it noted that it enabled their "misappropriation", adding that customers should be paid first.

The lawsuit reads:

"Customers should not be lining up with secured or unsecured creditors in insolvency proceedings only to share the reduced assets of the FTX Group and Alameda."

The lawsuit seeks to represent over 1 million FTX customers in the US and abroad. It also seeks a court ruling that funds held in the accounts of the American subsidiary of the cryptocurrency exchange FTX.US, as well as in FTX Trading accounts or other identifiable customer assets, are not the property of the company.

If the court concludes that the property in question belongs to FTX, clients seek a judgment that gives them priority over paying creditors.

Technical Market Outlook:

The BTC/USD pair had made a local high at the level of $17,055 in form of a Pin Bar candlestick pattern on H4 time frame chart and local low at the level of $16,271. The market keeps trading below 100 MA on the H4 time frame chart and is trading below the intraday technical resistance seen at $17,057. The volatility is still limited despite the recent spike down, so the trading rage is seen between the levels of $16,268 - $17,057. Any breakout below the range low would extend the corrective cycle towards the level of $15,984 (November 28th low).

Weekly Pivot Points:

WR3 - $17,153

WR2 - $16,998

WR1 - $16,916

Weekly Pivot - $16,845

WS1 - $16,746

WS2 - $16,688

WS3 - $16,533

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues without any indication of a possible 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. Moreover, there is a clear test of the 50 WMA located at the level of $15,600, so any breakout below the moving average and a weekly candle close below moving average will be considered as another indication of the down trend continuation. The new yearly low was made at $15,555 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 in the longer term.