Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 17 February 2020

Crypto Industry News:
China leads the way when it comes to digital payments made by average consumers in the country. While payment methods such as Apple Pay in the United States are becoming more and more accepted, such methods are still relatively rare in nearby Japan. Alipay offers Chinese residents the chance to use fiat currency for everyday transactions, apparently acclimatizing them to the day when both payments and currency become 100% digital.

Although recently China has taken a slightly more liberal position on online and digital payments, the vast majority have responded to the increase in the number of cryptocurrencies by more authoritarian means. After it became clear that Chinese citizens were mining millions of Bitcoins, the government responded by banning the trade in all cryptocurrencies in the country from September 2017.

Despite the Chinese government's firm stance on cryptocurrencies, the country has also shown interest in Blockchain technology and the development of the central currency of the digital bank. It becomes clear that he has his own plans thanks to additional regulation.

According to media reports, the People's Bank of China has recently filed for more than 80 patents, paving the way for the introduction of a new digital currency. Virtually all of these patent applications relate to the integration of the digital currency system with existing banking infrastructure.


Technical Market Overview:
The anticipated correction on the Bitcoin has finally arrived as the BTC/USD market fell over 5% during the weekend. The price has tested the technical support located at the level of $9,555 after the Bearish Engulfing candlestick pattern was made around the level of $10,430. The momentum remains weak and negative so there is still a chance for another wave down. If the level of $9,555 is clearly violated, then the next target for bears is seen at the level of $9,508 and $9,123.

Weekly Pivot Points:
WR3 - $11,039
WR2 - $10,715
WR1 - $10,112

Weekly Pivot - $9,845
WS1 - $9,424
WS2 - $8,941
WS3 - $8,335


Trading Recommendations:
The market might have made the first impulsive wave up of a higher degree. This strategy is valid as long as the level of $7,582 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 $10,433 is clearly broken.







Performed by Sebastian Seliga
Analytical expert
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