Technical Analysis of BTC/USD for August 20, 2020

Crypto Industry News:

Expobank, a commercial bank in Russia, issued the country's first cryptocurrency-backed loan.

According to a report by the local news agency Kommersant on August 19, Expobank granted a loan by issuing an individual bank loan powered by Waves tokens (WAVES).

Waves CEO and founder Alexander Ivanov confirmed this information, noting that the loan used Waves tokens as collateral. A new loan was made to local entrepreneur Mikhail Uspensky earlier this week. The businessman said he is obligated to continue using Waves tokens and has no plans to sell them. According to data, the Waves token can be purchased for about $ 4. This means a decrease of over 5% in the last 24 hours.

Some legal experts are convinced that a new type of loan has the potential to be recognized by Russian law. However, there is still a lot of uncertainty, as cryptocurrencies do not have many sympathizers among the Russian authorities.

Kirill Nikitin, a lawyer at Vegas Lex, admitted that the circulation of digital assets in Russia still involves a lot of legal uncertainty. In fact, it is still unknown what type of cryptocurrency transaction is legal and what is prohibited. This is related to the recently passed cryptocurrency law in Russia, which prohibits payments using digital assets. More regulatory clarity will emerge under another draft law to be adopted at the end of 2020.

Some legal experts are sure that Waves tokens can be legally used in Russia as they are not a payment tool. Yuri Brisov, a local attorney who advised on a bank loan powered by Waves, said the Waves are absolutely legal in Russia.

Technical Market Outlook:

The BTC/USD pair has reverses all the recent gains above the $12,000 and is currently testing the technical support located at the level of $11,646 as anticipated. Any clear violation of this level will result in sell-off acceleration towards the next technical support seen at the level of $11,220. In order to bounce and resume the up trend, bulls have to break through the short-term trend line resistance around the level of $11,855, which is the nearest technical resistance. The weekly time frame trend remains up.

Weekly Pivot Points:

WR3 - $13,201

WR2 - $12,569

WR1 - $12,222

Weekly Pivot - $11,635

WS1 - $11,298

WS2 - $10,689

WS3 - $10,325

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 correction 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 $10,463.

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