Crypto Industry News:
The International Monetary Fund (IMF) believes that Central Banks may issue digital currencies in the future. According to a full document, the IMF and the World Bank conducted a survey on fintech, which asked for answers to financial institutions in all member countries and based its conclusions partly on the 96 responses received.
According to the document, several Central Banks in various countries are considering introducing some form of digital currency. Uruguay has already reportedly launched the CBDC pilot program, while the Bahamas, China, Sweden and Ukraine are "on the verge" of testing their systems.
In addition, many banks conducted research on the potential impact of CBDC on financial stability, the structure of the banking sector, the entry of non-bank financial institutions and the transmission of monetary policy.
Motivation to offer CBDC varies depending on the report. It is said that both emerging economies and developed economies are considering CBDC options, the latter aiming to provide an alternative to cash as its frequency of use decreases. On the other hand, for emerging economies in developing countries, the main effect of CBDC would be to reduce bank costs, as well as potentially increase the availability of banks for citizens without a bank account.
Technical Overview:
The ETH/USD pair is still continuing the horizontal correction after the top of the wave 5 has been made at the level of $362.60 last week. The market is trading right about the middle of the corrective zone, but the bulls are having trouble to rally through the level of $320.74, which is the major technical resistance. Only a clear, impulsive and sustained breakout above this level would be a signal for the uptrend to resume. Otherwise, the correction might be unfolding and evolve into a more complex and time-consuming pattern.
Weekly Pivot Points:
WR3 - $16,315
WR2 - $14,938
WR1 - $12,895
Weekly Pivot - $11,624
WS1 - $9,683
WS2 - $8,320
WS1 - $6,345
Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The current cycle is wave 2 of the higher degree, which is a corrective wave and after is completed, the uptrend should resume.
