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Technical analysis of BTC/USD for Dec 6, 2019
Crypto Industry News:
Governor of the Bank of Japan (BOJ) Haruhiko Kuroda said that there is no public demand for the digital currency of the central bank (CBDC) in this country.
During his speech at the symposium on the 35th anniversary of the Financial Industry Information Systems Center, Kuroda raised the challenges of private global stablecoins and CBDC. He concluded that there is currently no reason to release CBDC in Japan:
“In Japan, the amount of outstanding cash is still increasing, and there does not appear to be a demand for public CBDC at present. Nevertheless, the Bank of Japan is conducting technical and legal research on this matter in order to be ready in case it appears in the future they need for CBDC 13. The bank must also examine the impact of CBDC on financial intermediation. ”
Although the president of the central bank currently sees no reason to issue his own digital currency, he admits that “there are many different private digital money in Japanese yen.” The bank encourages the use and development of such private digital currencies, aiming at bringing their functions closer to what is expected of CBDC.
One of the strategies adopted by the bank to promote such systems is to increase the number of users of non-cash payments and ensure interoperability between many payment service providers. In October, the institution introduced a point reward program for customers using non-cash payments to improve the performance of relevant companies.
Still, when it comes to global stablecoins like Libra, Kuroda said the bank would take a more cautious approach:
“Global Stablecoins (GSC), such as Libra, can offer convenient payment services to many users, provided legal certainty and technical stability are provided. However, users cannot constantly appreciate the benefits of GSC unless the various challenges and risks of money laundering, cybersecurity, data protection and consumer and investor protection are properly addressed “he said.
Kuroda also said that no SGC should start operating until legal, regulatory and supervisory challenges and risks are resolved. He noted that authorities around the world must cooperate and maintain financial stability thanks to the free mobility of capital in the world with stablecoins.
Technical Market Overview:
The three-wave upwards move on Bitcoin was a counter-trend correction that ended up at the level of $7,809 in form of a Shooting Star candlestick pattern. Since then the bears are trying to take back the control over the market and are pushing the prices towards the next target. The recent sudden spike up was capped at the level of $7,700 again and it was retraced in 100%. The BTC/USD pair is extending the down move towards 61% of the Fibonacci retracement located at the level of $6,973, which is the nexttarget, but the down move might even get to the swing low located at the level of $6,488.
Weekly Pivot Points:
WR3 – $9,343
WR2 – $8,576
WS3 – $7,989
Weekly Pivot – $7,181
WS1 – $6,590
WS2 – $5,869
WS3 – $5,242
Technical 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
