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Crypto Industry News:
While Bitcoin is too volatile to be money, it can be a "substitute for gold," said the chairman of the US Federal Reserve.
Speaking on Monday at an event hosted by Bank for International Settlements, Jerome Powell responded to questions about cryptocurrency. When asked if he believed Bitcoin and other cryptocurrencies to pose a threat to financial stability, Powell cited known arguments that had long come from older financial data.
Crypto assets are very volatile and therefore not really useful or trustworthy as a store of value and not backed by anything, he stated, continuing:
"They're more of a speculative asset, so they're not particularly used as a currency. Basically, they're a substitute for gold, not for the dollar."
Powell's words provide some of the most direct Fed views of Bitcoin in recent times, and are based on the outlook offered in 2019. They also appear weeks after new Treasury Secretary Janet Yellen clarified her concerns about decentralized cryptocurrencies.
Technical Market Outlook:
The BTC/USD pair is slowly approaching the 61% Fibonacci retracement located at the level of $52,213. The technical support at the level of $53,290 had been broken and the bearish pressure is visible. On the other hand, the bulls might still try to rally above the short-term trend line resistance seen around the level of $58,223, so any breakout above this line will be considered as bullish with a target at $60,000 and above. The momentum is now weak and negative, which supports the short-term bearish outlook. The longer term trend is still up and intact.
Weekly Pivot Points:
WR3 - $68,853
WR2 - $64,700
WR1 - $61,327
Weekly Pivot - $57,323
WS1 - $54,318
WS2 - $49,983
WS3 - $46,876
Trading Recommendations:
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. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $41,125 is clearly broken on the e daily time frame chart.
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