Crypto Industry News:
A member of the US Federal Reserve governing board seems to believe that one in four Bitcoin users are criminals.
Lael Brainard highlighted the perceived risks of cryptocurrency in comments made yesterday in Frankfurt, Germany. Brainard spoke in a panel in honor of Benoit Coeure, a member of the board of the European Central Bank (ECB).
Specially selected for the panel, which was part of the event "Monetary policy: challenges ahead" in Frankfurt, Germany, was an illegal activity involving Bitcoin. According to Brainard, who quoted a research study earlier this year, Bitcoin still contains a significant number of dishonest users.
"Only one-third of the most popular stock exchanges require identity verification and address confirmation to make deposits or withdrawals. This is worrying because many studies have found that cryptocurrencies support a significant number of illegal activities," she told the audience.
Continuing, Brainard added that as much as 50% of all Bitcoin transactions were somehow illegal:
"One study estimates that, for example, more than a quarter of Bitcoin users and about half of the Bitcoin transactions are related to illegal activity."
The tone of speech increases the sea of confusion about the actual use of Bitcoin. According to reports, transaction studies regularly lead to contradictory conclusions - others suggest that lack of anonymity means that real criminals still prefer cash.
Further difficulties lie in determining how many people use Bitcoin because the user can control an infinite number of addresses.
Technical Market Overview:
The BTC/USD pair made a Pin Bar at the low located around the level of $6,345 and quickly bounced higher. The move-up has broken the technical resistance located at the levels of $6,488, $6,642, $6789, $7,028 and $7,234 within 16 hours, so from the Elliott wave point of view, it might be labeled as the wave 1 of the new upward move. If it is so, then the most important level is the low of the Pin Bar located at $6,365 and this level can not be violated by bears. Currently, the market is developing the corrective structure and the move up should be continued once the correction is over.
Weekly Pivot Points:
WR3 - $8,020
WR2 - $7,786
WR1 - $7,335
Weekly Pivot - $7,151
WS1 - $6,714
WS2 - $6,500
WS3 - $6,073
Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. 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.
