Technical Analysis of BTC/USD for October 26, 2020

Crypto Industry Outlook:

A Russian official argued that the country should have started researching the central bank's digital currency four years ago to gain a leadership position in this field. However, according to Dmitry Peskov, special representative of the President of the Russian Federation for Digital and Technological Development, the advantage of priority also carries a number of threats to financial stability.

According to the media, Peskov said a quick second strategy in developing CBDC could be more efficient than becoming the world's first issuer, stating:

"The financial risk is so great that I think a quick second strategy is much more effective than trying to be the first. Let's see what a leader can do and what obstacles they will encounter."

Peskov stated that the Russian CBDC - the digital ruble - could become a reality in three to seven years if development starts now.

Anatoly Aksakov, a member of the Russian Duma and representative of key cryptographic projects related to Russian legislation, argued that the digital currency would enter a pilot phase in the first half of 2021. Aksakov is convinced that the upcoming digital ruble "is the future", while decentralized crypto tokens like Bitcoin have no future.

Financial experts from other countries are also cautious about CBDC. On October 19, Jerome Powell of the US Federal Reserve said it was better to do it right than to be first. New Zealand's central bank has made a similar statement, saying there is "much work to do" in the CBDC area before releasing the national digital currency.

Technical Market Outlook:

The BTC/USD pair had made a new yearly high at the level of $13,300 and keeps trading around this level. The local lows are shallow, so the bulls are still in control of this market. If the level of $13,300 is clearly violated, then the next target is seen at the level of $13,698. The key short-term technical support is seen at the level of $12,625 and as long as is not broken the odds for another wave up are high.

Weekly Pivot Points:

WR3 - $15,886

WR2 - $14,555

WR1 - $13,946

Weekly Pivot - $12,537

WS1 - $11,955

WS2 - $10,713

WS3 - $10,093

Trading Recommendations:

Bitcoin is trading at the yearly highs 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 $14,000, 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 $10,000 is broken.


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