Technical Analysis of BTC/USD for December 21, 2020

Crypto Industry News:

In a published announcement, FinCEN announced proposed regulations requiring registered cryptocurrency exchanges to verify "the identity of their clients" if a counterparty is using an unhosted or otherwise secured wallet and the transaction exceeds $ 3,000.

The recipe is currently only a suggestion. The Treasury gave interested parties 15 days to reply with comments. Rumors about the proposed rule changes have been circulating for a month.

"This provision addresses serious national security concerns in the CVC market and aims to fill the gaps that malicious actors are trying to exploit in the record keeping and reporting system," said Steven Mnuchin.

Many leading lawmakers have already opposed the proposed change, which many see as an attack on the nature of peer-to-peer transactions. However, in the absence of a formal law, the Treasury has considerable regulatory power in this area.

That said, the current proposal is not as radical as some feared. Instead, the existing requirements for storing transaction reports - the $ 3,000 threshold for the so-called Travel Rule - to registered entities that interact with self-hosted wallets.

Technical Market Outlook:

The BTC/USD pair has been trading around the level of $24,000 for all the weekend. The local pull-backs were made down to $23,000 and then quickly reversed. The momentum is still strong and positive, so the next target for bulls is seen at the level of $25,000. There is no indication of trend reversal on daily and weekly time frame. The technical support is seen at the level of $23,000 and $22,000.

Weekly Pivot Points:

WR3 - $31,175

WR2 - $27,625

WR1 - $25,844

Weekly Pivot - $22,429

WS1 - $20,661

WS2 - $17,171

WS3 - $15,431

Trading Recommendations:

Bitcoin made another 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 $30,000, 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 $20,000 is clearly broken.

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