20.01.202009:04 Forex Analysis & Reviews: Technical analysis of BTC/USD for 20/01/2020:

Crypto Industry News:

The Canadian authorities have issued new guidelines to determine which digital currency trading platforms are subject to derivative rules.

The Canadian Securities Authority (CSA) explained the new rules in the "Guidance on the Application of Securities Legislation to Cryptographic Assets facilitators" published on January 16.

Essentially, the agency has established a line between transactional platforms that immediately provide cryptographic resources to their users and those that store transactions related to cryptographic resources until the user makes a subsequent request.

After analyzing trading techniques on various platforms, CSA came to the conclusion that some of them only provide their users with a contractual right or claim to a cryptographic resource and do not immediately transfer it to the user. Such cryptocurrency trading platforms are subject to securities laws, and therefore are subject to derivatives laws.

Potentially, the user will rely on the platform and depend on it until it is transferred to a user-controlled wallet. Until then, the user would not have ownership, possession or control over cryptographic resources without relying on the platform. The user will be exposed to continuous risk related to insolvency (credit risk), fraud risk, performance risk and proficiency risk from the platform "- we read.

The CSA will not apply securities laws to cryptographic exchanges where the underlying cryptographic component is not a security or derivative and cryptographic assets are immediately provided to you.

Technical Market Overview:

The BTC/USD pair has broken slightly above the last high and made a new local high at the level of $9,130, but this breakout did not last long. The bear's reaction for a new high was to push the prices lower again and they have managed to hit the level of $8,405 on the Bitcoin way down. This level has been tested before and it is clear that the bulls will treat this level as an important short-term key support, so it is worth to keep an eye on the current situation on this market. Any violation of the level of $8,405 will lead to the sell-off extension towards the next technical support at $8,298 and below.

Weekly Pivot Points:

WR3 - $10,362

WR2 - $9,728

WR1 - $9,214

Weekly Pivot - $8,735

WS1 - $8,034

WS2 - $7,406

WS3 - $6,911

Trading recommendations:

There is a possibility that the wave 2 corrective cycles are completed at the level of $6,345, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $7,582 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $10,278 is cleary broken.