Technical analysis of BTC/USD for 06/11/2019

Technical analysis of BTC/USD for 06/11/2019

Crypto Industry News:

Tim Draper claims that India is exposing itself to corruption by trying to ban cryptocurrencies like Bitcoin. Speaking to Indica, California, Draper urged Prime Minister Narendra Modi to rethink the current hostile attitude and environment for cryptography. India has banned banks from servicing industry companies in 2018. “I hope Modi will become an honest politician, but when he closed himself on Bitcoins I thought he was going back to old ways,” said Draper. It is unclear how the Indian state would ban cryptography if such a law came into force. According to financial media, the catastrophic currency reform of the country in 2016, in which the value of some banknotes disappeared overnight, increased the demand for investment in Bitcoins. Proponents argue that cryptocurrencies help criminal activities such as money laundering while reducing or even eliminating cash allows for a more transparent economy. Draper also praised the concept of currency reform but added that banning Bitcoins leaves the door open for more, no less corruption. “I thought it was a good move; [Modi] gets rid of corruption and tries to create a state free of corruption, but blocking Bitcoin causes it even more and I think it is very dangerous for the country,” adds Draper.

Technical Overview:

Not much has changed on the overall picture of the BTC/USD market. Bitcoin is still locked in a narrow range between the levels of $9,539 – 8,836 (marked as thick black lines on the chart), and the momentum is neutral on the H4 timeframe chart. The zone from $9,645 to $10,278 is still a sell zone, where most of the sell orders have entered the market. The immediate support is seen at the level of $8,925. The global investors wait for the next breakout, so the volatility might dry up for some time now.

Weekly Pivot Points:

WR3 – $10,530

WR2 – $10,201

WR1 – $9,572

Weekly Pivot – $9,189

WS1 – $8,589

WS2 – $8,251 S3 – $7,587

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 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.

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