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Technical analysis of ETH/USD for Oct 28, 2019
Crypto Industry News:
On October 26, the Standing Committee of the 13th National People’s Congress in China adopted a new law governing cryptography that will come into force on January 1, 2020, according to a local CCTV news service.
According to the report, the new legal framework aims to set standards for the use of cryptography and password management. They define the role of the central cryptographic agency that is to conduct public cryptographic work, creating guidelines and policies for the industry.
The bill was published on May 7 by a Chinese news site. The text largely focuses on centralized password management by the government and does not explicitly mention cryptocurrencies, although it focuses on cryptography, a key ingredient underlying cryptocurrencies such as Bitcoin.
“The key to success is that – the development of new cryptography, hash algorithm, and even the use of technology – will be in the official legal sphere. This means that you must comply with the CCP standard for all” encrypted “behaviors that can be VERY wide, from mining for block propagation “- we read.
Technical Market Overview:
The ETH/USD pair has broken through the descending trendline and rallied through all the technical resistance levels located at $163.11, 4176.75 and $185.08. Finally, the bullish rally was capped at the level of $196.61 and a big Shooting Star candlestick pattern was made. The market has entedt a corrective cycle and as long as it trades above the level of $163.11 there is still a chance for another impulsive wave up.
Weekly Pivot Points:
WR3 – $249.74
WR2 – $225.62
WR1 – $207.85
Weekly Pivot – $177.85
WS1 – $161.54
WS2 – $131.99
WS3 – $115.01
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
