Crypto Industry News:

The United States Federal Reserve System is exploring the possibility of developing a central bank digital currency (CBDC) and what problems and risks it can potentially create.

Federal Reserve Chairman Jerome Powell responded to a request by US representatives French Hill and Bill Fosters to see if the Federal Reserve plans to launch a national digital currency.

In his letter, Powell outlined the Federal Reserve's views on the creation of the CBDC, stressing that although the agency is not currently developing the CBDC, it has assessed and continues to assess the costs and benefits of such an initiative. Powell revealed that the agency is conducting its own small research-oriented experiments to gain practical experience and to better understand the capabilities and limitations of CBDC.

Powell said that before issuing the CBDC, the Federal Reserve must answer a number of legal questions, including monetary and payment policy, financial stability, supervision and operational issues, and their vulnerability to cyberattacks:

"If the project is to be financially transparent and provide protection against illegal activities, a general-purpose CBDC may probably require the Federal Reserve to keep a record of all payment data in digital currency [...], and sometimes this raises problems related to data privacy and information security" - he continued.

Finally, Powell noted that a number of design features should be considered when developing the CBDC, including the management of the currency's inventory, the need for the Federal Reserve's payment system to carry out transactions, and anonymity regarding CBDC ownership and transactions.

Technical Market Overview:

The BTC/USD pair has made a new local low at the level of $7,934 and the pair has been consolidating just above this level for the last 24h. The bears are in full control of the market and the level of $8,298 will now act as technical resistance. The down move is still continued then and so far there are no signs of any kind of a reversal. The next target for bears is $7,934 and $7,701.

Weekly Pivot Points:

WR3 - $9,580

WR2 - $9,281

WR1 - $8,860

Weekly Pivot - $8,570

WS1 - $8,114

WS2 - $7,825

WS3 - $7,365

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. 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.