Technical analysis of BTC/USD for Jan 7, 2020

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Crypto Industry News:

The Chinese Central Bank (PBoC) reports that work on the government-supported digital currency is “running smoothly.” The bank issued a statement during a working conference held in Beijing on January 2-3, according to an official announcement.

China devoted five years of research and development to the new Central Bank Digital Currency (CBDC) and began its first real-world currency pilot in December 2019.

As a form of digital legal tender – unlike private, decentralized cryptocurrency – CBDC will be controlled by PBoC and 100% backed by reserves that commercial institutions pay to the institution.

As mentioned, the PBoC made a brief statement on progress in the field of digital yuan as part of the conference on “studying and implementing the spirit” of the fourth plenary session of the 19th Central Committee of the Communist Party of China in October 2019 and the annual December Central Labor Conference. Commerce.

During the conference, which was spoken by the president of PBoC Yi Gang and secretary of the Chinese communist party Guo Shuqing, the work of PBoC in 2019 was summarized and the bank’s key tasks regarding further development of “Chinese socialism” in 2020 were outlined.

The tasks of the bank in 2020 under the aegis of the Central Committee of the Party and the Council of State will include making “countercyclical adjustments” in monetary policy, counteracting financial risk and striving for continuous liberalization of the national economy.

Technical Market Overview:

The BTC/USD pair has been rallying higher towards the level of technical resistance located at $7,934 after the Bullish Engulfing pattern was made around the level of $6,789. If the rally persists, then the next target for bulls is seen at the level of $8,049 or $8,298. Moreover, the Bitcoin has broken out of a narrow range located between the levels of $6,345 – $7,601, just as other main cryptocurrencies like ETH and BCH done earlier. The larger timeframe trend remains down and there are no signals of any trend reversal just yet.

Weekly Pivot Points:

WR3 – $8,248

WR2 – $7,819

WR1 – $7,642

Weekly Pivot – $7,179

WS1 – $6,988

WS2 – $6,550

WS3 – $6,318

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 07/01/2020:

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