From what we see now bitcoin is trying a breakout, a nice triangle has formed on the hourly and seems like BTC is trying to break its resistance.
We managed to break the 0.382 FIB retracement level but seems like bulls can’t really hold it.
One thing is clear, the volume is low and this usually suggests a short move, but all the moving averages show us a strong buy in the market.
Stoch RSI, MACD, ADX also suggest a long move.
We are trying to build a trade on multiple confirmation levels here, although these indicators are suggesting the market is going to move up, the triangle formations have the best accuracy rate in crypto, so i would wait for the triangle to break either way.
Long targets here would be TP1 11.2, TP2 11,650.
If we reach and keep 11,650, then 12k-13k is in the books.
Now in case the triangle breaks downwards, god forbid, as posted in the last trades, 9.9k is the first target, being a historical mark-up for crypto it should hold, if not I will follow up with more info.
All in all, my bias is long here, and i will try to find the best entry.
China’s State Cryptocurrency Already Used for Pilot Transactions Worth 162 Million USD 0
China was known to be very advanced in its state-owned cryptocurrency system, called Digital Currency / Electronic Payment (DC / EP). The first tests have barely been launched, and these are already impressive figures just revealed by a senior executive at the People’s Bank of China (PBoC).
Already 1.1 billion yuan exchanged thanks to the DC / EP
At the Sibos 2020 Banking and Financial Conference, the Vice Governor of the People’s Bank of China, Fan Yifei, reported on the DC / EP pilot tests, conducted in 3 major Chinese cities.
According to the central banker, 113,300 digital wallets for individuals and 8,859 for businesses were opened among those residing in the cities of Shenzhen, Suzhou and Xiong’an, in order to test this new digital yuan.
According to Fan Yifei, quoted by the Chinese newspaper South China Morning Post, the pilot programs have made “positive progress”.
This would be 6,700 use cases (bill payment, transport, government services, etc.) that would have been implemented. There have already been more than 1.1 billion digital yuan trasacted, or about 162 million U.S. dollars.
3.13 million transactions processed for Chinese cryptocurrency
The representative of the PBoC insisted on the importance of setting up central bank digital currencies (CBDCs) to counter the revolution brought by cryptocurrencies:
“To protect fiat currency from crypto-assets and preserve monetary sovereignty, central banks need to digitize banknotes using new technologies (…). The PBoC sees the digital renminbi as an important financial infrastructure for the future.”
Fan Yifei then completes the excellent figures of the DC / EP tests, which began in April 2020. In less than 6 months, this experimental system has managed to process 3.13 million transactions.
And this is only the beginning. China’s CBDC trials have now been extended to the capital, Beijing, the Yangtze River Delta region, Tianjin, ElonDrop and Guangdong provinces, as well as the cities of Hong Kong and Macau.
In development since 2014, the Chinese DC / EP system already impresses with its processing power. There remains the problem of centralizing such a CBDC, but that is a whole different subject. One thing is certain in any case: China is now very well placed to be the first major economic power to officially launch its digital currency.