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Technical analysis of BTC/USD for Dec 30, 2019
Crypto Industry News:
The Uzbek government has banned its citizens from buying cryptocurrencies. According to a local information point, the National Project Management Agency has banned citizens from buying cryptocurrencies, even on existing exchanges.
This decision is a surprise to many, because the country has previously shown relative gentleness against digital currencies. In September 2018, the government of the country signed a memorandum of understanding to regulate and establish a license for cryptographic exchanges, mining operations and ICOs. In the same month, Uzbekistan’s president Shavkat Mirziyoyev ordered the creation of the state blockchain development fund called “Digital Trust”. Last July, he also signed a decree on the development and integration of Blockchain technology with the country’s public administration.
While the new regulation prohibits citizens from buying or selling cryptocurrencies, it gives some limited commercial rights to existing cryptocurrency owners.
Owners who are citizens of Uzbekistan can sell their current investments on two licensed exchanges after completing Know Your Customer procedures to avoid the possibility of money laundering. As for cryptographic assets whose origin cannot be proved, transferring or holding them in the country was considered illegal.
The Finance Magnates report notes that this right may prove ineffective given that citizens can use a virtual private network – or VPN – to bypass the ban and access foreign cryptocurrency trading platforms.
Technical Market Overview:
The BTC/USD pair has been trading inside of a tight range during the weekend. The range is located between the levels of $7,461 – $7,195 and at the top of this range another Pin Bar candlestick pattern has been made, which might indicate a possibility of a wave down. The key technical resistance is still located at the level of $7,601, so any rally higher must break through this level. On the other hand, the key technical support is seen at the level of $6,938.
Weekly Pivot Points:
WR3 – $8,243
WR2 – $7,942
WR1 – $7,641
Weekly Pivot Point – $7,288
WS1 – $6,995
WS2 – $6,660
WS3 – $6,345
Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.
The material has been provided by InstaForex Company – www.instaforex.com
