Technical Analysis of BTC/USD for December 8, 2020

Crypto Industry News:

The Russian digital ruble is expected to lower the costs of doing business, but it could also lower the profits of commercial banks, says Elvira Nabiullina, president of the Bank of Russia.

At a meeting on December 3, "Resistance Russia," a non-governmental organization of small and medium-sized enterprises, Nabiullina said the digital ruble could undercut commercial bank profits from commissions and transaction fees.

In addition, she stated that a central bank's digital currency is a natural way to improve financial services:

"This is a natural move in the development of the financial system: financial intermediaries should become less burdensome to the economy and profit from new products and services instead of reaping the benefits of monopoly and the lack of alternatives. [...] We believe that small and medium-sized companies should definitely benefit from this." - she said.

She also highlighted a number of digital ruble benefits, including safer and faster payments.

"We are now considering several models where a digital ruble may exist, where the interactions of customers, central bank and commercial banks are organized differently, but these advantages remain across all models. It's fast, reliable and secure payments," she said.

In October 2020, Nabiullina said the digital ruble will not have the same level of anonymity as cash, noting that the Bank of Russia expects to strengthen user privacy. The chairwoman's comments came shortly after the Russian central bank officially announced its plans for the CBDC on 13 October. According to the bank, the digital ruble could soon be used as an additional form of money alongside cash.

Technical Market Outlook:

The BTC/USD pair has been trading inside of the narrow range, developing the triangle pattern. The range is located between the levels of $18,559 - $19,625. However, the short term trend line had been violated recently and the bulls are trying to break out of the range towards the new ATH after the triangle pattern is completed. If the level of $19,888 (ATH) is clearly violated, then the next target for BTC is seen at the level of $20,000. Please notice, the momentum is not that strong as it was for the last two weeks, but it is still positive, so the bulls have the control over the market.

Weekly Pivot Points:

WR3 - $21,987

WR2 - $20,958

WR1 - $20,107

Weekly Pivot - $19,077

WS1 - $18,325

WS2 - $17,164

WS3 - $16,350

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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