Industry news:
- Bank of Japan shelves on plans to issue central bank backed crypto.
- Like other cryptos, Facebook must comply with existing anti-money laundering guidelines.
At the time the regulators around the world are coming into terms with the announced Facebook's cryptocurrency Libra, the deputy governor of the Bank of Japan (BoJ) Masayoshi Amamiya makes its stance towards the new project. According to the governor, all digital assets are required to comply with set regulations regarding money laundering and associated risk management.
Trading recommendation:
BTC did exactly what I expected yesterday. BTC confirmed the breakout of the rising wedge in the background and did test the level of $10.718. I still expect more downside and potential test of low from the rising wedge at the price of $9.793.
Yellow rectangle – Resistance sell zone ($11.231)
Orange rectangle – Resistance sell zone ($11.446)
Red rectangle- Support ($9.793)
MACD oscillator is showing the new momentum low in the background and the BTC is trading in the negative territory, which confirms my bearish view. RSI oscillator and Stochastic are showing the reading around 50 level, which is sign that there is possible new downward movement. As long as the BTC is trading below $12.000, I would watch for selling opportunities on the rallies, level of $11.446 looks like a solid sell zone. Downward target is set at the price of $9.793.
