Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 01 April 2020

Crypto Industry News:
After many delays, the adoption of the main Russian law on cryptocurrencies will be postponed once again, this time because of the coronavirus.

Anatoly Aksakov, chairman of the Russian State Duma of the State Commission for Financial Markets, says that the national cryptography act - a draft law on digital financial assets - is currently being finalized, but will not be adopted before the end of spring 2020.

According to a Russian press agency report of March 31, Aksakov admitted that earlier delays in adopting the bill were due to disagreement with the new type of asset between local authorities. Aksakov, who is also the chairman of the National Banking Council at the Russian central bank, reportedly said that the central bank opposed the legalization of cryptocurrencies, while the State Duma advocated some cryptographic initiatives.

However, the long-awaited law is now postponed for another reason. As Aksakov noticed, when Russia shifts to priority actions against the COVID-19 pandemic, all legislative processes slowed down.

Aksakov added that the upcoming Russian cryptographic law will define the definition of cryptocurrency and prohibits the use of cryptocurrency as a form of payment. In addition, the law will cover the issue and trading of digital assets, the official said. In mid-March, the executive director of the Russian central bank said the bill bans the issuance and circulation of cryptocurrencies.

Aksakov also emphasized that the new law will not hinder cryptocurrency exchanges operations if they do not break it. He added that the bill on digital financial assets does not contain provisions regarding the extraction of cryptocurrencies. However, he expressed the conviction that profits from cryptographic mining should be taxed, noting that cryptographic mining is a "type of activity that creates value".

Aksakov's recent remarks about the delay in adopting the upcoming Russian cryptography law appear after Russia has seen the largest one-day increase in coronavirus cases for the sixth time in a row.


Technical Market Outlook:
The bears on Bitcoin have managed to push the price lower after a Pin Bar candlestick pattern was made. The price made a local low at the level of $6,271, which is a technical support for the price. In a case of a breakout here, the lower levels of the red zone will be tested again: $5,900 and $5,500. The price of BTC/USD is below the trend line already and the larger time frame trend remains down, so the odds favor the bears.

Weekly Pivot Points:
WR3 - $7,805
WR2 - $7,343
WR1 - $6,514

Weekly Pivot - $6,022
WS1 - $5,217
WS2 - $4,764
WS3 - $3,965


Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in Bitcoin and treat BTC as a digital gold. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.







Performed by Sebastian Seliga
Analytical expert
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