FX.co ★ Technical analysis of BTC/USD for 14/10/2019

Crypto Industry News:

The Malaysian Ministry of Finance says that both domestic and global cryptocurrency adoption rates are low, despite the considerable attention the sector has received. However, in the recently published "Economic Outlook 2020" report, the ministry noted that several prominent companies from key sectors of the economy have taken steps to adopt digital currencies, according to financial media:

"Although the impact of these projects was not even more noticeable, digital assets may appear as part of the wider economy or go as a novelty, depending on the result of their use," the report says.

The ministry called on the global authorities to formulate a legal framework to solve problems related to digital assets, noting that close monitoring of the sector's development is necessary.

The report summarizes the work done to date by the national financial supervisory authorities, including the amendment to Bank Negara Malaysia anti-money laundering and anti-terrorist financing provisions in February 2018 to take into account the requirements for digital asset service providers.

In January 2019, the regulation on capital markets and services in Malaysia aimed at regulating both digital assets and exchange platforms entered into force. The order states that all digital assets offered as a form of investment or used as a fundraising method are classified as domestic securities.

Technical market overview:

After a failed attempt the rally above the level of 38% Fibonacci retracement at $8,671, the BTC/USD pair has reversed towards the technical support located at the level of $8,048. This level is around the middle of the horizontal trading range located between the level of $8,760 - $7,700, so the price in now back to the range again. The momentum is flat and so is the price action at the beginning of the new trading week as the global investors await a clear breakout in either direction. Please notice the larger timeframe trend remains bullish.

Weekly Pivot Points:

WR3 - $9,781

WR2 - $9,248

WR1 - $8,711

Weekly Pivot - $8,198

WS1 - $7,675

WS2 - $7,127

WS3 - $6,590

Trading recommendations:

Due to the short-term impulsive scenario invalidation, the best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.