Crypto Industry News:
China continues its attacks on the cryptocurrency space with a public reminder that Bitcoin and other digital currencies "are not legal tender and have no real value."
In a briefing for local media, Yin Youping, deputy director of the People's Bank of China's Financial Consumer Rights Protection Bureau (PBoC), said the central bank would keep "the situation under high pressure" and would continue to crack down on digital currency transactions.
In an informational session that happened by chance during China's "Financial Awareness Month," Youping stated that digital currency trading was pure investment hype. Youping said the public should be aware of the risks and stay away from crypto investments.
Despite the government's continued suppression of the cryptocurrency industry, Youping saw a possible rebound in cryptocurrency trading operations in China. As a countermeasure, the PBoC will work with local authorities to spot traders using foreign crypto exchanges and will step up efforts to block trading sites, applications and corporate channels.
The PBoC is reportedly working with the China Banking and Insurance Regulatory Commission to develop systems to monitor and combat the use of digital currencies.
In addition to pressure from the PBoC, local governments in China have also begun taking proactive measures to stop crypto activity. Yingjiang County regulators asked hydropower plants to cut power to cryptocurrency miners in the area.
Technical Market Outlook
The BTC/USD pair has failed to rally above the level of $50,000 during the weekend and fell out of the ascending channel again. The nearest technical resistance is seen at the levels of $49,316 and $50,456 (last week high). The key short-term technical support is seen at $46,719 and $46,209 (last week lows). On the higher time frame chart than H4, the bulls are having problems with the level of $51,189, which is the 61% Fibonacci retracement of the whole move down.
Weekly Pivot Points:
WR3 - $54,910
WR2 - $52,718
WR1 - $50,895
Weekly Pivot - $48,630
WS1 - $46,765
WS2 - $43,987
WS3 - $42,007
Trading Outlook:
The bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $51,189, which is the 61% Fibonacci retracement of the whole move down. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).
