Crypto Industry News:
The Reserve Bank of Australia (RBA) has warned Australian investors against speculating on digital assets, questioning the entire crypto sector.
During his speech to the Australian Corporate Treasury Association on Thursday, RBA payment policy chief Tony Richards gave an overview of DLT technology, crypto assets, stablecoins, and central bank digital currencies (CBDCs).
In his speech, Richards asked questions about the validity and growth of cryptocurrencies in 2021, moving on to the amount of capital invested in memecoins such as Dogecoin and Shiba Inu. He also assured that public attention to cryptocurrencies in 2021 was "undoubtedly driven by influencers and celebrity tweets."
Richards outlined three scenarios in which "the current speculative demand may start to reverse".
First, he argued that investors may soon be "less fond of fads" and FOMO, and instead pay more attention to warnings from regulators and policymakers.
Second, he said governments around the world could seek to crack down on energy-intensive proof-of-work cryptocurrencies such as Bitcoin, and finally said tax authorities could seek to remove anonymity to reduce financial crime.
Technical Market Outlook
The BTC/USD pair has bounce from the level of $55,748 and made a local high at $60,022. Nevertheless, the bulls are too weak to carry on bouncing and the market reversed back down. The momentum remains weak and negative despite the potential low of the wave 3/C. Only a sustained breakout above the level of $62,767 would change the outlook to more bullish.
Weekly Pivot Points:
WR3 - $75,582
WR2 - $70,896
WR1 - $64,654
Weekly Pivot - $60,209
WS1 - $54,112
WS2 - $49,298
WS3 - $43,190
Trading Outlook:
According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $52,943 is clearly broken on the daily time frame chart (daily candle close below $52,000).