Technical Analysis of BTC/USD for September 14, 2020

Crypto Industry News:

At a virtual conference hosted by the Brookings Institute, Andrew Bailey, Governor of the Bank of England (BoE), stressed that crypto assets are simply "inappropriate for the payment world."

In his prepared comments on the future of cryptocurrencies and stablecoins, Bailey categorized Bitcoin as an asset that "has nothing to do with money." He has also shown hesitant to believe that crypto assets are a suitable investment opportunity as "their value can fluctuate quite, widely and unexpectedly."

This is what Bailey made when he spoke of accelerating the pace of innovation in payments. However, in the case of stablecoins, the governor said it could offer some "useful benefits", such as reducing friction in payments, while warning:

"If stablecoins are to be widely used as a means of payment, they must have standards equivalent to those currently in force for other forms of payment and money transfer through them."

In June, UK-based L3COS submitted a proposal to the Bank of England (BoE) for a blockchain-based operating system that would power the digital currency issued by the central bank. In addition, in March, the BoE published an in-depth discussion on CBDC which analyzed the rapidly changing payment landscape and the potential role that CBDCs could play in supporting a bank's mandate to manage monetary and financial stability.

Technical Market Outlook:

The BTC/USD pair keeps hovering around the level of $10,000 again as this is very important psychological level for market participants. The market has been consolidating in a narrow range located between the levels of $9,825 - $10,586. The nearest technical resistance is seen at the level of $10,890 and $10,940 and the key short-term technical support is seen at the level of $9,922. The market conditions are oversold and the momentum remains neutral on H4 time frame chart. The weekly time frame trend remains up.

Weekly Pivot Points:

WR3 - $11,302

WR2 - $10,908

WR1 - $10,609

Weekly Pivot - $10,206

WS1 - $9,887

WS2 - $9,466

WS3 - $9,157

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.

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