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Technical Analysis of BTC/USD for July 15, 2020
Crypto Industry News:
According to his head, the UK central bank is considering the option of introducing a digital currency. Speaking at an online event, Bank of England President Andrew Bailey told a group of UK students that the bank is debating such a move, according to financial media. Bailey said ongoing investigations will concern the central bank digital currency (CBDC), which would affect ‘payments and society’. Calling it a “very big problem,” he expected CBDC to be a viable option in a few years, when the coronavirus crisis passed.
Bailey’s comments appear at a time when more and more central banks around the world are working at different levels on the idea of introducing CBDC, either as a national digital currency for retailing, or for wholesale settlement and settlement between banks.
The Swedish Riksbank, the world’s oldest central bank, recently analyzed CBDC profitability and achieved mixed results for central banking purposes, citing the significant change and costs associated with the transition to digital technology. The Philadelphia Federal Reserve also determined that CBDC could one day replace the role of commercial banks, but with the additional risk of potentially damaging money markets.
Technical Market Outlook:
The BTC/USD pair keeps trading below the short-term trend line resistance and below the local technical resistance located at $9,240. The past Pin Bar candlestick low was made at the level of $9,052, which is below the 61% Fibonacci retractement located at $9,082. If violated again, then the drop might accelerate towards the level of $8,860. The momentum is still hovering around the neutral level, but there is no sign of increased bullish activity. Only a sustained breakout through the trend line resistance might put the bulls back to control over the market again.
Weekly Pivot Points:
WR3 – $10,016
WR2 – $9,728
WR1 – $9,448
Weekly Pivot – $9,161
WS1 – $8,884
WS2 – $8,576
WS3 – $8,302
Trading Recommendations:
The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.
The material has been provided by InstaForex Company – www.instaforex.com
