Crypto Industry News:

The UK government has published a consultation paper that outlines a risk reduction strategy for stablecoin investors.

The proposal follows the collapse of the TerraUSD algorithmic stablecoin, which lost its 1: 1 link to the US dollar during a sell-off in the cryptocurrency market earlier this month.

The government recommends that existing legislation be amended to give the Bank of England the power to appoint administrators to oversee insolvency arrangements with failed stablecoin issuers.

"Since the initial commitment to regulate certain types of stablecoins, developments in crypto asset markets have further accentuated the need for appropriate regulation to help mitigate risks to consumers, market integrity and financial stability," the Treasury said in its proposal to be considered by Parliament.

Following the Terra implosion, regulators around the world focused on stablecoins, while the European Commission advocates a large-scale ban on this asset class.

Technical Market Outlook:

The BTC/USD pair relief rally continues and the bulls had tested the key short-term supply zone located between the levels of $32,380 - $32,892. The local high was made at the level of $33,370, but only a sustained breakout above this zone would change the outlook to more bullish in the short-term, because 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 - $33,360

WR2 - $32,016

WR1 - $30,581

Weekly Pivot - $29,009

WS1 - $27,632

WS2 - $25,903

WS3 - $24,538

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.