Crypto Industry News:
According to official sources, the People's Bank of China (PBoC) is almost ready to introduce the government-supported digital currency. Today's publication of the financial news portals revealed that the disclosure of Facebook's planned cryptocurrency, Libra, could have affected the digital currency of the central bank (CBDC).
After five years of research and development work on the system, which has been ongoing since 2018, the Bank is almost ready to launch CBDC, revealed last week the vice president of Mu Changchun. Currency tests were ongoing and the institution reported testing many approaches to the project. If everything goes smoothly, PBoC expects to enter the currency earlier than Libra.
Yang Dong - director of the Research Center for Financial Technology and Cybernetic Security at Renmin University in China - told China Daily that Libra's announcement sparked debate among Chinese regulators and motivated designers to involve more NGOs in the currency development and issue process.
Without disclosing specific names, Yang pointed out that the next round of CBDC research will cover both the central bank as well as private and state-owned companies, and will focus on non-governmental and cross-border applications.
China UnionPay president and former PBOC official Shao Fujun told China Daily that the CBDC will "have many positive effects, including tracking the flow of money in business operations and supporting monetary policy creation."
Technical Market Overview:
The ETH/USD pair has retraced 38% of the last swing down and then failed to move higher. The bears have pushed the prices lower towards the level of technical support at $190.94, but it was broken anyway. Currently, the price has fallen out of the channel and is trading around the level of $187.00. The next technical support is located at the level of $180.00 There are still two more retracements to hit as well and they are located at the level of $205.68 and $213.45 if the bulls are strong enough to continue the corrective move up.
Weekly Pivot Points:
WR3 - $257.46
WR2 - $236.43
WR1 - $213.67
Weekly Pivot - $193.41
WS1 - $171.74
WS2 - $150.23
WS3 - $128.88
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 current cycle is wave 2 of the higher degree and it might have been completed, so the uptrend should resume soon. The global investors are waiting for a breakout above the level of $238.68 to confirm the resumption of the uptrend.
