Technical analysis of BTC/USD for Dec 31, 2019

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Crypto Industry News:

An application for an ETF investment fund linked to Blockchain technology has been submitted to the Chinese national legislature, according to information disclosed by the Chinese Securities Commission.

The proposal submitted on December 24 by the Shenzhen Penghua Fund relates to an ETF that would track the results of a basket of listed shares from companies in the Blockchain sector.

If approved, the fund would be the first Blockchain ETF in China, according to information published by financial media.

On the same day the Penghua Fund was submitted, the Shenzhen stock exchange announced the “Blockchain 50 Index”. The index consists of the top 50 Blockchain companies listed on the Shenzhen Stock Exchange in terms of market capitalization. Apparently, the list includes Ping An Bank, Midea Group and Zixin Pharmaceutical, among others. Companies from the new index reflect a wide cross-section of the industry, with specializations covering hardware development, technology and services as well as Blockchain applications.

If the Penghua Fund proposal is successful, many other asset managers will probably follow suit with their own fund proposals. Even now, when the Blockchain sector is still in its infancy, deepening political guidelines and the growing number of established companies in the industry may increase the popularity of national ETFs related to Blockchain.

Technical Market Overview:

The BTC/USD pair has been trading inside of a tight range located between the levels of $7,461 – $7,195. 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

Source:: Technical analysis of BTC/USD for 31/12/2019:

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