Technical Analysis of BTC/USD for October 29, 2020

Crypto Industry Outlook:

Bitcoin cannot function as an inclusive currency for those without banking services due to its volatility, Mastercard CEO Ajay Banga said at the Fortune Global Forum. He also pointed to a lack of knowledge about who is behind the cryptocurrency.

"I do not believe in volatility or, for that matter, a lack of transparency about who is involved in this currency. That's why we believe in central bank digital currencies."

Banga also revealed that Mastercard has a significant CBDC patent library, which may help explain why the company is so positive about them.

When asked about Bitcoin as a potential solution for financial inclusion, Banga stated that the cryptocurrency did not meet the requirements for people without access to banking services. He believes that if fiat currencies went digital, they would "help cross-border flows," but added that "the financial inclusion of individuals is a different matter." He has expressed a strong view on the opacity of cryptocurrencies for years, calling all non-government cryptocurrencies rubbish and even likening them to "snakes", saying that they do not "deserve" to be considered a medium of exchange.

In 2019, the company appeared to be taking a more open stance on cryptocurrencies, being one of the founding members of the Libra project. But last October, the payment provider left the project along with Visa, Stripe and Paypal, citing lack of transparency among the main reasons for its departure.

Technical Market Outlook:

The BTC/USD pair has made a Doji candlestick pattern, reversed from a new yearly high at the level of $13,778 and since then is trading in a horizontal trend, consolidating the recent gains. Please notice that the market is trading inside a channel as well. The local lows are shallow, so the bulls are still in control of this market. If the level of $13,698 is clearly violated, then the next target is seen at the level of $14,000. The key short-term technical support is seen at the level of $12,625 and as long as is not broken the odds for another wave up are high. The intraday supports are seen at the levels of $13,296 and $13,116.

Weekly Pivot Points:

WR3 - $15,886

WR2 - $14,555

WR1 - $13,946

Weekly Pivot - $12,537

WS1 - $11,955

WS2 - $10,713

WS3 - $10,093

Trading Recommendations:

Bitcoin is trading at the yearly highs and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $14,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $10,000 is broken.

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