Technical Analysis of BTC/USD for November 27, 2020

Crypto Industry Outlook:

Russia's Prime Minister Mikhail Mishustin seems to have expressed support for the further development of the local cryptocurrency market.

At a recent government meeting on November 26, Mishustin proposed legal protection for cryptocurrency holders in the country to help develop a new industry. According to Mishustin, such a framework would develop the industry in "a civilized way so that the owners of such assets can protect their rights and interests" while preventing "hidden patterns".

As part of the plan, Mishustin proposed to amend the Russian Tax Code to recognize cryptocurrencies such as Bitcoin as the property of:

"Let's make a number of changes to the Tax Code so that digital financial assets can be considered property, and their owners can count on legal protection in the event of any illegal activities, as well as defend their property rights in court" - he said.

Mishustin replaced former Russian Prime Minister Dmitry Medvedev in January 2020, after which he called on the country to prioritize the development of the digital economy. However, the current status of the local crypto ecosystem remains in doubt as the government plans to officially ban cryptocurrency payments in January 2021. Russian authorities also want to impose prison sentences for failing to report annual crypto transactions of around $ 600,000.

Technical Market Outlook:

After making the local low of the first wave of the correction at the level of $16,260, the BTC/USD pair has bounced to 38% retracement level of the last wave down seen at $17,475. The levels of $19,442, $19,000, $18,388, $18,000 and $17,644 will now act as a technical resistance. The momentum is still weak and negative. Please notice, that the Bitcoin is now out of the main acceleration channel as well, so the further losses might be more dynamic that the recent ones. After the corrective cycle is completed, the up trend should be continued towards the new all time highs.

Weekly Pivot Points:

WR3 - $23,175

WR2 - $21,060

WR1 - $20,074

Weekly Pivot - $17,904

WS1 - $16,917

WS2 - $14,683

WS3 - $13,761

Trading Recommendations:

Bitcoin is trading close to 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 $20,000, 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 $15,000 is broken.

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