17.10.201905:14 Forex Analysis & Reviews: Technical analysis of BTC/USD for 17/10/2019

Crypto Industry News:

The former head of the US regulatory authority believes that the government must digitize the dollar and take power from central banks.

In a press release, J. Christopher Giancarlo, former chairman of the Commodity Futures Trading Commission or CFTC, argued that the dollar could lose its status in the future. This is due in particular to the fact that other countries are introducing digital currencies. He argued that the answer was to create a new form of a dollar.

"We propose a digital dollar - a blockchain protocol sanctioned by the government, created and maintained by an independent non-governmental group, but administered by banks and other trusted payment organizations. The funds entered into the system would be exchanged for digital US dollars on the Blockchain, with the funds being kept on special trust accounts kept by the Federal Reserve, "he explains.

Unlike many banking sources that discussed the digital currency, the concept of the digital dollar directly points to the decentralization of power over money. While refraining from claiming that central banks should lose their ability to control national currencies, Giancarlo says that by avoiding the digital currency, the US will weaken the dollar's attractiveness.

"Significant entities, including central banks and social media platforms, may introduce new currencies in the next few years. As the network develops, they may eventually destroy the status of the dollar as the most popular currency on the international market," he warned.

Technical Market Overview:

The BTC/USD pair keeps moving lower this week and currently is very close to the key technical support level located at $7,672. The move down has been initiated after the Bearish Engulfing pattern was made around the level of 38% of the Fibonacci retracement and since then the bears have been pushing the price lower and lower. Any violation of the level of $7,672 will invalidate the current Elliott wave scenario and make the whole corrective structure more complex and time-consuming.

Weekly Pivot Points:

WR3 - $9,781

WR2 - $9,248

WR1 - $8,711

Weekly Pivot - $8,198

WS1 - $7,675

WS2 - $7,127

WS3 - $6,590

Trading recommendations:

Due to the short-term impulsive scenario invalidation, 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 still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.