Technical Analysis of BTC/USD for December 23, 2020

Crypto Industry News:

U.S. Treasury Secretary Steven Mnuchin recently rejected a proposal whereby exchanges and crypto platforms verify the identity of customers exporting digital assets to self-service wallets. The cryptocurrency exchange OKCoin noted that this proposal would create additional work for the exchanges.

After the initial review of the FinCen [Financial Crimes Enforcement Network] proposal as well as the wallet verification requirements, I think the proposal to extend the CTR requirement to cryptocurrency exchanges and the need to collect the recipient's physical address would mean additional work for the exchanges.

Rumors of potential new cryptocurrency wallet regulations circulated the cryptocurrency space for several weeks before Mnuchin finally dropped the bomb on December 18, before his expected departure from office. This is just a proposal at this stage, the new regulation would require the identification of information about sites sending cryptocurrencies in excess of $ 3,000 to an independent wallet. If it is transferred between exchanges, the limit increases to $ 10,000. Industry websites have 15 days to comment on the proposal.

However, the proposal did not turn out to be as paralyzing as initially rumored. Prior to its release, many US congressmen spoke out against potential details of the legislation that included a whitelist of allowed addresses not included in the proposal.

Technical Market Outlook:

The BTC/USD pair has keeps trading around the short-term technical resistance and ATH seen at the level of $24,000. 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 key short-term technical support is seen at the level of $23,000 and $21,858.

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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