BTC/USD Price Analysis – February 21, 2023

Daily Price Outlook

In the last 24 hours, BTC/USD has risen by 2.50%, currently trading at $24,819.0. Over the past week, its value has increased by 14%. The Bitcoin market has been on an upward trend and has shown consistent signs of bullish behavior.

Understanding Hong Kong's Potential Crypto License System And How It Could Impact Investors

The Securities and Futures Commission (SFC) launched a consultation on February 20 for its proposed guidelines regarding virtual asset trading platforms. Under the new proposal, anyone or any company offering services related to cryptocurrencies must obtain a license from the SFC. Exchanges and service providers will need to prepare to cease operations in Hong Kong if they do not intend to pursue a license.

The new regime requires all crypto trading platforms to review and revise their policies and controls to align with the new rule. Additionally, the regime sets out several specifications for cryptocurrency exchanges and service providers.

The SFC has requested public comments on its newly proposed licensing system for cryptocurrency exchanges, which is expected to take effect in June 2023. The feedback period is open until March 31.

This move signals Hong Kong's openness towards digital asset investors and users, which is positive news for the BTC/USD and the overall cryptocurrency market.

Paxos To Face Charges: What Does This Mean For Crypto Investors?

On February 13, the New York State Department of Financial Services (NYDFS) instructed Paxos to stop producing more Binance USD (BUSD) stablecoins. In compliance with the NYDFS directive and in close coordination with them, Paxos will discontinue the issuance of new BUSD tokens as of February 21.

Additionally, Paxos has confirmed that it received a notification from the Securities and Exchange Commission (SEC) indicating that it may take action regarding the classification of BUSD as a security. The SEC has been evaluating whether Paxos should have registered the issuance of BUSD with the SEC under federal securities laws, and is considering legal action. However, the SEC has not yet filed any formal charges against Paxos.

The cryptocurrency markets were nervous after US authorities increased their regulatory oversight of digital currencies. However, despite the US government's tighter regulatory stance, the crypto markets and BTC/USD saw gains.

BTC/USD Intraday Technical Levels

Support     Resistance

24094         25341

23357         25851

22847         26588

Pivot Point: 24604

BTC/USD – Technical Outlook

Bitcoin's technical outlook hasn't changed a lot as BTC has been trading in a narrow range between $23,700 and $25,200. The immediate resistance level for the BTC/USD pair is currently at $25,200, and a break above this level could push the BTC price toward $26,000.

Leading technical indicators, such as RSI and MACD, are showing divergence, which can indicate indecision among investors. The RSI is currently above 50, in a buying zone, while the MACD is forming histograms below 0, in a sell zone.

On the downside, Bitcoin's immediate support is at $23,750. If the price drops below this level, the next support for BTC would be at $22,850, determined by the 50% Fibonacci retracement mark.

The focus later this week will be on the FOMC meeting minutes on Wednesday, which could potentially drive BTC price action.

Related:

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    * EUR/USD Analysis – February 21, 2023