Technical Analysis of BTC/USD for October 5, 2020

Crypto Industry News:

Estonian central bank - Eesti Pank - has announced the launch of a research program to test how to build a digital currency infrastructure.

According to the statement, Eesti Pank will collaborate on the research project with technology companies SW7 Group and Guardtime. The initiative aims to test whether a blockchain-based keyless signature (KSI) solution can help create virtual currency.

It is worth adding that Estonia is already using blockchain and KSI technology in its e-government services. The bank's project will also address new payment solutions "that may be possible through the use of electronic identifiers and other Estonian e-government solutions."

The project will consist of several phases and will last approximately two years. The first phase will be to create a scalable, practical and secure platform that meets the requirements of CBDC. At the same time, it was emphasized that the platform is to operate quickly, securely and ensure privacy.

Rainer Olt, head of the bank's Payment Systems Department, said:

"As a small central bank, Eesti Pank carefully selects the development projects of the Eurozone central banks to which we can make a significant contribution. Over the years, Estonia has developed unique know-how in maintaining a secure, private and efficient eGovernment. Estonia's unique wealth of experience is a good impetus to launch the project with technology companies SW7 and Guardtime to explore [new] technological opportunities. "

The bank emphasized that it is constantly striving to develop its financial environment and payment system in order to keep up with the times and respond to the needs of citizens.

Technical Market Outlook:

The BTC/USD pair has been slowly moving up towards the level of $10,679, which is the 61% Fibonacci retracement of the last wave down. There is a change for the market to continue to move higher if the level of $10, 697 is clearly violated. The next target for bulls is seen at the level of $10,890, which is the last swing high. On the other hand, the nearest technical support is seen at the level of $10,586 and $10,547.

Weekly Pivot Points:

WR3 - $11,471

WR2 - $11,178

WR1 - $10,858

Weekly Pivot - $10,602

WS1 - $10,300

WS2 - $10,024

WS3 - $9,715

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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