17.01.202009:19 Forex Analysis & Reviews: Technical analysis of BTC/USD for 17/01/2020:

Crypto Industry News:

The Russian Prime Minister urged the country to prioritize the development of the digital economy. According to the national daily, Mikhail Mishustin - who took office as prime minister today - highlighted some of the key priorities of his work and pointed to the need for institutional reforms in Russia.

Mishustin said the country should implement modern information technologies, including the development of a national digital economy program, adding:

"The state should become a digital platform made for people."

Mishustin issued a statement after that former prime minister of Russia, Dmitry Medvedev, announced that he was resigning. The decision was made in connection with the message of Russian President Vladimir Putin addressed to the Federal Assembly, in which he presented a number of fundamental changes to the country's constitution.

Large Russian companies, including some in which the state has a significant share, are beginning to test and apply Blockchain technology to various aspects of their business. Last December, Russian energy network operator Rosetti began testing the Blockchain payment solution in the electricity retail sector to automate and increase transaction transparency between energy producers, suppliers and consumers.

Last November, Russia's largest bank, Sberbank, pioneered the Blockchain solution for repurchase agreements. The bank has received a patent for a solution that uses smart contract technology to automate transactions between parties.

Major players in the cryptocurrency and Blockchain space also praised Russia's role in the development of the industry. Last year Binance cryptocurrency exchange president Changpeng Zhao praised programming talent coming out of the country and called Putin the most influential person in the Blockchain industry.

Technical Market Overview:

The BTC/USD pair has broken through the key technical resistance located at the level of $8,836 and made a local high at the level of $8,938 at the time of writing the analysis. Please notice, that this high was again made on lower momentum than the previous one, so there is another negative divergence present. Before, the pair har tested the technical support located at the level of $8,573 and bounced higher, which means, the support had been recognized by the market participants as valid and they wanted to resume the recent uptrend. Moreover, there is no possibility to move lower at the price of Bitcoin unless the key support at the level of $7,601 is clearly violated.

Weekly Pivot Points:

WR3 - $9,744

WR2 - $9,058

WR1 - $8,561

Weekly Pivot - $7,905

WS1 - $7,428

WS2 - $6,754

WS3 - $6,270

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. There is a possibility that the wave 2 corrective cycles are completed, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation.

Exchange Rates 17.01.2020 analysis

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Sebastian Seliga,
Analytical expert
InstaForex Group © 2007-2021
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