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Technical analysis of BTC/USD for Nov 7, 2019
Crypto Industry News:
The draft document issued by the European Union suggests that the Union should consider issuing its own digital currency. Reuters reported that the project – which is still undergoing change – calls on Member States to develop a common approach to cryptocurrencies, probably while banning high-risk projects.
Approval of the project in its current form, which may happen next month, may have far-reaching consequences. More specifically, Reuters suggests that such a law could turn into an EU regulatory campaign against cryptocurrencies.
The project prepared by the Finnish presidency of the EU also suggests that the European Central Bank should consider issuing its own digital currency:
“The ECB and other EU central banks could usefully explore the opportunities and challenges of issuing central bank digital currencies, including considering concrete steps in this direction”.
The draft will be discussed this Friday and the prospect of its adoption will be presented on December 5.
Technical Overview:
The BTC/USD pair is still locked in a narrow range between the levels of $9,539 – 8,836 (marked as thick black lines on the chart), and the momentum is neutral on the H4 timeframe chart. The zone from $9,645 to $10,278 is still a sell zone, where most of the sell orders have entered the market. The immediate support is seen at the level of $8,925. The global investors wait for the next breakout, so the volatility might dry up for some time now.
Weekly Pivot Points:
WR3 – $10,530
WR2 – $10,201
WR1 – $9,572
Weekly Pivot – $9,189
WS1 – $8,589
WS2 – $8,251
WS3 – $7,587
Trading recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. 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
