Technical analysis of BTC/USD for 04/03/2020:

Crypto Industry News:

The German financial regulator has published guidelines classifying cryptocurrencies as financial instruments. This step extends the definition of financial instruments to cover all types of digital assets, with the previous paradigm only covering security tokens.

In a press release issued on Monday, the German Federal Financial Supervisory Authority (BaFin) described the crypto as follows:

"Digital representation of value that has not been issued or guaranteed by any central bank or public authority and is not necessarily linked to a currency defined by law and which has no legal status of currency or money, but is accepted as a medium of exchange by natural or legal persons and may be sent, stored and sold electronically ".

According to BaFin, its new classification reflects the guidelines of intergovernmental agencies such as the Special Group on the Prevention of Money Laundering (FATF). This is the second groundbreaking classification of cryptocurrencies that have appeared over the past few days, and an Australian judge recently ruled that crypto is an investment instrument - which means that virtual currencies can be used in the country.

The new BaFin cryptographic classification announcement is also another step in the country's aspiration to adopt the Fifth EU Money Laundering Directive (AMLD5), which appeared in January 2020.

As part of the new BaFin guidelines on cryptocurrencies, cryptocurrency depositors will have to obtain a license from the regulator to offer their services in this country. Cryptographic platforms already operating in a country without a license must apply for it by the end of November 2020, but they must demonstrate readiness for this before 30 March 2020.

Technical Market Overview:

The local high on Bitcoin was made at the level of $8,914, but it is still below the key short-term technical resistance located at $9,013, so all the Bitcoin bounces were very shallow so far. The downwards momentum is now decreasing, but is still weak and negative, so another wave down might happen any time now. The next target for bears is seen at the level of $8,000 and the key short-term technical resistance is seen at the level of $9,013.

Weekly Pivot Points:

WR3 - $10,789

WR2 - $10,332

WR1 - $9,212

Weekly Pivot - $8,808

WS1 - $7,687

WS2 - $7,218

WS3 - $6,064

Trading Recommendations:

The market might have made the first impulsive wave up of a higher degree. 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 $10,433 is clearly broken.

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