Technical Analysis of BTC/USD for December 15, 2020

Crypto Industry News:

The Chinese government is not seeking to replace existing fiat currencies with its own digital currency, according to the former governor of the People's Bank of China (PBoC).

Zhou Xiaochuan, president of the Chinese Financial Association and former governor of the PBoC, said the Chinese digital yuan is not intended to replace global fiat currencies like the US dollar and the Euro, Chinese media reported.

Also known as electronic payment in digital currency or DCEP, Chinese digital yuan was designed with the sole purpose of transforming cross-border trade and investment, Zhou said. He contrasted the Chinese digital currency with the Facebook-backed cryptocurrency project previously known as Libra. Zhou added that China has learned from global regulatory opposition to the Libra project, and regulators fear it will disrupt financial systems and monetary sovereignty.

"Some countries are worried about the internationalization of the yuan [...] We cannot push them on sensitive issues and we cannot impose our will," he added.

Zhou noted that one of the main advantages of DCEP is that it allows both payments and real-time currency conversion. "If a currency exchange occurs at the time of a retail transaction, and there is supervision of the exchange [...], this opens up new interconnection possibilities," he said.

Zhou also stressed that most retail cross-border payments involving Chinese consumers are already cashless and settled via credit cards or payment services such as Alipay and WeChat Pay, however, digital yuan has additional benefits such as real-time processing and transparency.

Technical Market Outlook:

The BTC/USD pair has bounced from the level of $17,579 and went straight up. The local high was made at the level of $19,517 where was capped after the Bearish Engulfing candlestick pattern occurred. The nearest technical support is seen at the level of $19,000 and the next technical resistance is located at $19,625. The momentum is strong abd positive, so the higher time frame trend remains up, but breakout below the level of $19,000 will open the road towards the next technical support seen at $18,571.

Weekly Pivot Points:

WR3 - $21,188

WR2 - $20,624

WR1 - $20.024

Weekly Pivot - $18,707

WS1 - $18,177

WS2 - $16,940

WS3 - $16,341

Trading Recommendations:

Bitcoin made a new ATH 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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