Technical Analysis of BTC/USD for October 21, 2020

Crypto Industry News:

The United States Financial Crimes Enforcement Network has just dealt another blow to Bitcoin privacy enthusiasts. According to FinCEN in an official announcement, it imposed a $ 60 million civil penalty on Larry Dean Harmon, the man responsible for several Bitcoin privacy services. Larry Dean Harmon was the brain behind the Lightning Network Wallet Dropbit and the Bitcoin anonymization services (known as Tumblers, Blenders or Mixers) Coin Ninja and Helix.

According to FinCEN, the Bitcoin Helix and Coin Ninja mixers operated as unregistered money services business (MSB) companies. Accordingly, FinCEN concluded that Harmon acted in breach of US law. Thus, he was to avoid paying taxes and act without the relevant regulations that would apply to his activity if it were registered.

FinCEN claimed that between 2014 and 2020, Harmon's bitcoin mixers facilitated the anonymization of at least $ 311 million in the pending over 1 million different BTC transactions.

Technical Market Outlook:

The BTC/USD pair has finally broken above the $12,000 level (third time this year) and made a new swig high at the level of $12,255, so just above the WR3 located at $12,229 (at the time of writing the article). The momentum is still strong and positive, but the market conditions on the H4 time frame are clearly overbought. This situation might indicate a possible temporary pull back towards the level of $12,035 before another wave up will develop. The old supply zone seen between the levels of $11,646 - $11,785 will now act as a demand zone for bulls.

Weekly Pivot Points:

WR3 - $12,229

WR2 - $11,973

WR1 - $11,678

Weekly Pivot - 11,375

WS1 - $11,077

WS2 - $10,755

WS3 - $10,461

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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The material has been provided by InstaForex Company - www.instaforex.com