Crypto Industry News:
Bitcoin would benefit from global central banks issuing their own cryptocurrencies, says the founder of the world's largest digital asset manager.
Barry Silbert, founder and CEO of Grayscale Investments and venture capital companies Blockchain Digital Currency Group (DCG), has again expressed his position on Bitcoin.
Silbert spoke about many important issues related to digital assets, including the role of Bitcoin in the generational change of wealth, stablecoins, decentralized financing and central bank digital currencies (CBDC).
CBDC are virtual currencies issued and controlled by a federal regulatory authority. Unlike cryptocurrencies such as Bitcoin, CBDC apparently represents fiat currency in digital form. Although no global jurisdiction has yet launched CBDC, many governments are increasingly researching and building such projects, with China reportedly preparing to release the first true CBDC test.
According to a new study by the Bank for International Settlements, at least 10% of central banks are likely to spend CBDC for the general public in a short time.
Silbert, who claims to have bought his first Bitcoin in 2012, which is about three years after the creation of the first block on Bitcoin Blockchain, argued that central banks that develop their own fiduciary digital currencies can provide more power for Bitcoin. According to Grayscale CEO, Bitcoin and other non-central bank cryptocurrencies could ultimately use the same infrastructure that is widely used by CBDC.
Technical Market Overview:
The BTC/USD pair has made some interesting candlestick patterns at the end of the rally. Around the last swing high at the level of $10,440 the market has made a Pin Bar candlestick, then a Bearish Engulfing Pattern and another Pin Bar. All the upper shadows are long, so the bearish pressure is no clear and the market had tested the $10000 level already. It is worth to notice, that since the 50% Fibonacci retracement had been violated at the level of $10,046, then the next target for bears is seen at 61% Fibonacci retracement at the level of $9,953.
Weekly Pivot Points:
WR3 - $11,600
WR2 - $10,823
WR1 - $10,568
Weekly Pivot - $9,731
WS1 - $9,416
WS2 - $8,639
WS3 - $8,335
Trading Recommendations:
The market might have made the first impulsive wave up of a higher degree. 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 clearly broken.
