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Technical analysis of ETH/USD for Jan 29, 2020
Crypto Industry News:
Tim Draper, a billionaire investor, recommended millenials to buy Bitcoins during a TV interview. Draper believes that Bitcoin is particularly important for the millennium generations who want to set aside sufficient capital for retirement. He suggested that the traditional banking system is outdated.
Draper also blamed traditional finances for pulling hundreds of thousands of dollars into debts. He explained that with current salaries they cannot pay it off completely. It is a really hard time and they have become tenants and not buyers because they have to. He also emphasized that it is important to be able to move freely and move capital and goods freely around the world.
For these reasons, Draper recommends millennials to build their “empire in the new model”, which, unlike the dollar, does not impose high fees and regulations on transactions. He noted that putting money aside as older generations would do nothing to today’s economy, concluding:
“If you really want it to work, I think you will choose Bitcoin or crypto,” said Draper.
Many believe that Bitcoin is a highly inflationary and debt-based financial system solution. In order for Bitcoin to solve some of these problems, sellers would have to start setting prices in Bitcoins instead of in local currency. The reason is that if prices are set in the local fiat currency, inflation will continue to affect the prices of goods and services.
Technical Market Overview:
The ETH/USD trendline test has been completed and the bulls broke through it. The next target for them is the swing high located at the level of $178.12. It is worth to keep an eye on the current developments on the Ethereum market, nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $196.61 is clearly broken.
Weekly Pivot Points:
WR3 – $187.66
WR2 – $177.62
WR1 – $172.55
Weekly Pivot – $163.44
WS1 – $158.80
WS2 – $148.63
WS3 – $143.46
Trading Recommendations:
There is a possibility that the wave 2 corrective cycles are completed at the level of $115.05, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $146.94 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $196.61 is cleary broken.
The material has been provided by InstaForex Company – www.instaforex.com
