FX.co ★ Technical Analysis of BTC/USD for September 23, 2020

Crypto Industry News:

According to reports, the EU intends to introduce new regulations by 2024, thanks to which cross-border payments will be faster and cheaper thanks to the use of blockchain technology and cryptocurrencies. Moreover, he hopes that they can increase the potential value in this sector by EUR 27-55 billion.

The EU will present a bill clarifying how the existing rules apply to cryptocurrencies and, in addition, laying down new rules in case of gaps, Reuters reports.

The Union also wants to facilitate the exchange of data in the financial sector to encourage competition and a wider range of services, while respecting the principle of "same risk, same rules, same rules".

Brussels also plans to introduce new rules that will enable new clients to quickly start using financial services after the anti-money laundering and identity checks are over.

Meanwhile, a separate report by the European Parliamentary Research Service concluded that a number of legislative proposals could strengthen the digital operational resilience of EU financial sector actors, including their ICT security, by streamlining and updating existing rules and introducing requirements.

"The potential added value in this sector would increase by EUR 55 billion compared to the baseline scenario. A more cautious scenario points to a lower limit for the estimate of the value added increase of EUR 27 billion," the EPRS report reads.

Technical Market Outlook:

The BTC/USD pair has reversed the local bounce at the level of $10,536 after the Doji candlestick pattern was made at the H4 time frame chart. The intraday support is seen at the levels of $10,343 and $10,248. The upside momentum had clearly decreased and if the bearish pressure intensify, the market might extend a correction towards the level of $10,000 (intraday support, psychological level) or $9,863 (lower technical support). The weekly trend remains up.

Weekly Pivot Points:

WR3 - $12,186

WR2 - $11,616

WR1 - $11,271

Weekly Pivot - $10,739

WS1 - $10,293

WS2 - $9,807

WS3 - $9,393

Trading Recommendations:

The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic corrections are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,000.