Crypto Industry News:
The People's Bank of China (PBoC) claimed that its digital currency "can be said to be ready."
According to the deputy director of PBoC, Mu Changchuna, the prototype that adopts Blockchain architecture was successfully developed after five years of research. His statement, made at the China Finance 40 Forum, was announced by the local news service Shanghai Securities News.
He said digital currency emission using pure Blockchain architecture is difficult to achieve in a country as large as China because retailers require high-performance concurrency.
The digital currency will also adopt a two-tier operating system to satisfy a "complex economy with a vast territory and large population." In this system, PBoC will be at a higher level and commercial banks at a lower level. According to Mu, this will improve accessibility, increase adoption rates among the public, and promote innovation among commercial entities.
According to the director of PBoC, the digital currency is designed to be suitable for "small high-frequency retail business scenarios."
As reported by Cointelegraph, PBoC plans to overtake the US and Libra Facebook by releasing domestic cryptocurrency, while US politicians are holding back the development of social network stablecoin due to regulatory concerns.
Despite Mu's optimistic comments, it is not yet clear when exactly the Chinese digital currency will be issued.
Technical Market Overview:
The BTC/USD pair has been trading inside of the narrow range for some time now, consolidating the recent gains after the bounce from the level of $9,049. The local technical support located at the level of $11,027 has been tested during the consolidation cycle and the low of this test has been labeled as the low of the wave 2. It means the market is ready to continue the uptrend towards the new highs, but first, it will have to break out above the levels of $11,855, $12,008 and $12,269. Please notice, that the wave 2 might evolve into a more complex and time-consuming pattern, so patience is needed while keeping an eye on the wave development.
Weekly Pivot Points:
WR3 - $13,583
WR2 - $12,879
WR1 - $12,118
Weekly Pivot - $11,389
WS1 - $10,550
WS2 - $9,816
WS3 - $9,007
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 being treated as a correction inside of the uptrend. The larger degree WXY correction might have been completed and the market might be ready for another impulsive wave up of a higher degree.
