Technical Analysis of BTC/USD for January 28, 2021

Crypto Industry News:

Should national regulators be concerned about Bitcoin's recent success and massive surge in value? Blankfield suggests the cryptocurrency could undermine the ability to control existing financial systems.

During his television appearance, Blankfein reassured that the nature of bitcoin makes it an ideal tool for illegal financing, stating:

"It could work. Ultimately, however, currency should do several things. It is a medium of exchange and a store of value. Storing value is a bit tricky, and as a medium of exchange, you don't know if you're paying North Koreans or Al Qaeda... ".

Blankfein suggested that regulators will find it difficult to "track the flow of money" on the Bitcoin network. This can be a problem when money tracking could avoid negative scenarios such as terrorist attacks and money laundering. If regulators can track where the money is going and put an end to dangerous and illegal activity before it becomes a problem, then the undetectable nature of Bitcoin can be problematic in this regard:

"It may be feasible, but it will undermine freedom and liberty and the kind of lack of transparency that people like about it. This is a challenge Bitcoin will have to deal with. "

Blankfein believes that in order to solve this problem some basic features of Bitcoin (and some anonymous freedoms it offers) must be regulated. However, in the event that Bitcoin is deprived of the decentralized nature of a cryptocurrency, the question is whether such a regulated digital asset will still be able to attract investors' attention?

Technical Market Outlook:

The BTC/USD pair keeps trading under the short-term trend line resistance and the attempt to rally above the level of $35,000 had been capped. The market is getting close to the key short-term technical support seen at the level of $28,930 - $28,471 as the bearish pressure intensify. Please notice, that if this is clearly violated, then the market might extend the slide down towards the level of $27,000. On the other hand, the bulls must break through $35,000 in order to resume the up trend.

Weekly Pivot Points:

WR3 - $45,492

WR2 - $41,554

WR1 - $36,330

Weekly Pivot - $32,457

WS1 - $27,332

WS2 - $23,540

WS3 - $18,286

Trading Recommendations:

Despite the recent corrective cycle the bulls are still in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $50,000, 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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The material has been provided by InstaForex Company - www.instaforex.com

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