Source: Forex Analysis
Crypto Industry News:
Governor of the Central Bank of the Philippines, Benjamin Diokno, warned against the potential use of cryptocurrencies for financing terrorism and stressed that Bangko Sentral ng Pilipinas (BSP) will continue to closely monitor their use in the country, as we read in the local newspaper.
In addition to comments from Diokno, the deputy governor of the BSP, Diwa Guinigundo, reportedly provided further information on the institution’s position on cryptocurrencies. Diokno allegedly criticized Bitcoin’s potential as a unit of account, a medium of exchange and storage of values, claiming that the volatility of the highest cryptocurrency inhibits its usefulness at all three points.
The governor reportedly found that Blockchain and some DLT technology implementations could be useful for payments and settlements for peer-to-peer transactions, presenting this as a potential risk to the traditional banking sector.
Guinigundo said the central bank is approaching the development of fintech using regulatory sandboxes to offset the potential benefits of innovative financial technologies with robust consumer and investor protection.
Technical Market Overview:
The BTC/USD pair has broken out of the consolidation zone and almost hit the technical resistance located at the level of $8,241. The momentum is increasing, so there is a chance of the move up continuation. The next technical resistance is seen at the level of $8,241 and $8,306. Due to the form of the up move, it is too early to consider this move as a part of an impulsive cycle, it rather looks so far a corrective cycle in wave 4 extension.
Weekly Pivot Points:
WR3 – $9,578
WR2 – $9,128
WR1 – $8,319
Weekly Pivot Point: $7,869
WS1 – $7,020
WS2 – $6,556
WS3 – $5,664
The best strategy in the current market conditions is to trade in the direction of the short-term trend, which is still down and the corrective cycle continues. All the local bounces and correction should be treated as another opportunity to open the sell orders for a better price. Please notice, the larger time frame trend is up and there are no signs of any trend reversal, this is only the correction during the up trend.
The material has been provided by InstaForex Company – www.instaforex.com