Technical analysis of BTC/USD for 24/01/2020:

Crypto Industry News:

The Reserve Bank of India (RBI) said that regulated entities cannot offer cryptographic assets in this country, but this does not amount to a general ban on digital assets.

A published press article quoted a document that the RBI submitted to the Supreme Court in September, which wrote:

"First, RBI did not prohibit VCs (virtual currencies) in that country. RBI ordered its regulated entities not to provide services to persons or entities dealing with or settling VCs."

As part of the regulation, the Central Bank of India issued a statement in April 2018 restricting the use of services to all persons involved in the use of cryptographic assets.

"Due to the associated risk, it was decided that with immediate effect, entities regulated by the RBI will not deal with or provide services to individuals or business entities dealing with or settling VCs," reads the statement.

Following a statement from the RBI, the Internet and Mobile Association of India (IAMAI), a non-profit group dealing with digital development, has proposed repealing the cryptocurrency regulation.

Technical Market Overview:

The BTC/USD pair has broken through the technical support at the level of $8,405 and hit the 38% Fibonacci retracement level located at the level of $8,236. The bears have control of the market now and the downward momentum increases. As there are no signs of a trend reversal, the next target for bears is seen at the level of $7,961 (50% Fibonacci retracement) or just a tad lower, at the $7,934 - $7, 897 zones.

Weekly Pivot Points:

WR3 - $10,362

WR2 - $9,728

WR1 - $9,214

Weekly Pivot - $8,735

WS1 - $8,034

WS2 - $7,406

WS3 - $6,911

Trading recommendations:

There is a possibility that the wave 2 corrective cycles are completed at the level of $6,345, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $7,582 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $10,278 is clearly broken.

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