Technical analysis of BTC/USD for Oct 28, 2019

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Crypto Industry News:

One of the popular answers to recent BItcoin increases is the official support of blockchain technology by the most influential man in the world. Chairman, Secretary-General of the Communist Party of China, Xi Jinping gave a prominent speech at 18 research on blockchain technology and its future.

During the Thursday meeting of the Politburo of the Central Committee of the Communist Party in Beijing, Xi said blockchain could contribute to the dynamic development of the Chinese Republic. Both in economic and social terms.

Xi laid out the use of blockchain in various sectors of the state, on supply chains, IoT, collective transport or poverty reduction.

“We must treat blockchain as an important breakthrough in the independent innovation of basic technologies, […] We must clearly define the path we will follow, increase investment, focus on several key technologies and accelerate the development of blockchain technology and industrial innovation.”

The president also spoke about the initiative, the “Blockchain +” platform, which is designed to actively promote the application of blockchain technology in personal life. From education, through employment, pensions, medical assistance, to safe food, social security, etc.

It should be remembered, however, that although the Secretary-General of the ruling party in China praises blockchain, cryptocurrencies have been banned there since 2017. However, the People’s Bank of China, as we know, creates a digital yuan (renminbi), which we will probably see soon.

In addition, the middle state creates its own Central Bank Digital Currency (CBDC) which can be a competitor along with the digital yuan for Libra.

Technical Market Overview:

The BTC/USD pair has rallied 27% over the weekend and hit the level of $10, 278 again. The impressive rally might be the anticipated wave 1 of the new impulsive cycle to the upside. Currently, the market is in the local corrective cycle and is struggling to break through the technical resistance located at the level of $9,796. The next target for bears is seen at the level of $8,760 or even $8,474 before a new wave up will be made.

Weekly Pivot Points:

WR3 – $14,033

WR2 – $12,095

WR1 – $10,995

Weekly Pivot – $9,057

WS1 – $8,029

WS2 – $6,062

WS3 – $4,932

Trading Recommendations:

Due to the short-term impulsive scenario invalidation, 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

Source:: Technical analysis of BTC/USD for 28/10/2019

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