Technical analysis of Bitcoin for 23/04/2019

Crypto Industry News:

Donald Tapscott, chairman of the board of the Blockchain Research Institute, said in an interview, that the official Chinese currency, Renminbi (RMB), will become cryptocurrency. Tapscott revealed that he had recently met with the vice-president of the Communist Party in China. He reminded that President Xi Jinping believes that Blockchain is one of the most important technologies for the future of the country.

Speaking about the ban on cryptocurrency exchange operations, Tapscott outlined that China is also considering banning the extraction of cryptocurrencies. On the question of whether decentralized exchanges can operate in China – which previously banned the ICO – Tapscott said they could, although the government has a serious stance on the restriction of digital currencies and suggested that the decentralized exchanges would ultimately dominate the centralized ones thanks to their alleged ability to be transparent and identify “bad behaviors”. All assets, including traditional ones, such as securities, will allegedly be located on decentralized exchanges, said Tapscott.

Technical Market Overview:

After completing the corrective cycle in the wave 4, the BTC/USD pair has bounced from the level of $5,369 and clearly broken above the level of $5,500 which was the important technical resistance level (now support). The local high was made at the level of $5,632 and the impulsive wave up is still unfolding as this is not the end of the impulsive wave. The target is seen around the level of $6,000 for wave 5.

Weekly Pivot Points:

WR3 – 5,847

WR2 – 5,603

WR1 – 5,428

Weekly Pivot – 5,161

WS1 – 4,996

WS2 – 4,735

WS3 – 4,564

Trading recommendations:

Daytraders should keep the open buy orders until the target at the level of 6,000 is hit. There will be a possibility to partially take out the part of the profits at the level of 5,728 as this is strong technical resistance.

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The material has been provided by InstaForex Company – www.instaforex.com