Crypto Industry News:
On Monday, the Hong Kong Monetary Authority (HKMA) released an official white paper exploring the potential of the central bank's digital currency, the Hong Kong digital dollar (e-HKD).
According to the document, HKMA will seek to understand "potential architectures and design options" from a technical and regulatory policy perspective, with the ambition to create a two-tier system, i.e. the first designed for a "central bank to issue and buy CBDC" and the second retail-oriented for "commercial banks for the distribution and dissemination of both rCBDC and CBDC supported electronic money".
Hong Kong began the CBDC study in 2017 with the LionRock project, and in early 2020 began a seven-month collaboration with the Bank of Thailand, seeking "CBDC wholesale potential for cross-border payments".
The initiative soon evolved into the Multiple CBDC Bridge in February 2021. After the introduction of the Central Bank of the United Arab Emirates and the Digital Currency Institute of the People's Bank of China. This "m-CDBC" will aim to use distributed ledger technology to provide a proof of concept model for a unified payment network.
Technical Market Outlook:
The ETH/USD pair has broken above the trend line resistance located at the level of $3,385 and made a new local high at the level of $3,489. The rally ended with a Pin Bar candlestick formation, so a temporary pull-back towards the level of $3,252 was made and now the market is ready to continue the up move. The key short-term technical support is located at the level of $3,173 and the next target for bulls is seen at the level of $3,552. Please notice, that the bulls had violated all of the Fibonacci retracement levels already.
Weekly Pivot Points:
WR3 - $4,444
WR2 - $3,970
WR1 - $3,761
Weekly Pivot - $3,277
WS1 - $3,057
WS2 - $2,590
WS3 - $2,360
Trading Outlook:
Ethereum have started the next wave up and violated the long-term target at the level of $3,550. The next long-term target for ETH is seen at the level of $4,394. Nevertheless, in order to continue the long-term up trend, the price can not close below the technical support at the level of $2,906. The level of $1,728 (61% Fibonacci retracement of the last big impulsive wave up) is still the key long-term technical support for bulls.
