Central Bank of China Governor Yi Gang said that more than $ 299 million in transactions took place without major problems in national digital yuan pilot projects. This indicates that China is far ahead of its competitors in developing and researching a central bank digital currency (CBDC).
However, the European Central Bank does not want it to be left behind. European Central Bank President Christine Lagarde asked the public to comment on whether they “would be happy to use the digital euro just like the euro currency or the euro banknote”.
Another central bank trying to keep up is the Reserve Bank of Australia. Michael Bullock, Assistant Governor of the Reserve Bank of Australia, said the central bank has partnered with banks, financial institutions and software companies to explore “the effects of CBDC on efficiency, risk management and innovation in the wholesale market for financial market operations”.
The news that many countries are considering launching central bank digital currencies is positive in the long term, but the news may not affect price action in the short term, which is dictated by market sentiment.
Let’s examine the maps of the top 10 cryptocurrencies to see if they are in the mood to buy in times of recession or sell on the rise.
Bitcoin / USD
Bitcoin (BTC) lack of presence and capture of public resistance over $ 13,973.50 in recent days could have attracted profits from some short-term and short-term traders.
On the plus side, bulls do not allow bears to recover. Long Tail Light indicates buying at low levels.
If the BTC / USD rises from current levels, the bears will make another attempt to push the price above the resistance zone of $ 13,973.50 to $ 14,101.91. If they succeed, the trend can continue.
Although both MAs are sloping upwards, the downward divergences of the RSI indicate weak momentum. A break below the 20-day exponential moving average ($ 12,819) would be the first sign of bear strength.
If the bears can take advantage of this strength and push the pair below $ 12,460, a deeper 50-day SMA ($ 11,567) correction is possible.
ETH / USD
The bulls pushed the ether (ETH) down the line today, but failed to maintain higher levels. This indicates that the bears sell in small groups. For now, the bears have pushed the price to the 20-day moving average ($ 386).
A breakout and close within the 20 day EMA could push the price higher. The 50-day SMA ($ 371) is close to this support, so the bulls are likely to strongly defend this level.
If the ETH / USD pair bounces off the uptrend line, the bears will attempt to once again push the price above the downtrend line and the upper resistance of $ 405. If they succeed, it increases the likelihood of the meeting to $ 420 and then to $ 450.
Conversely, if the bears push the price below the trend line, it could drop to $ 360, then $ 333.
Flat moving averages and RSI near their midpoint indicate an equilibrium between supply and demand. This indicates an equal opportunity for bulls and bears to tilt the ledge in their favor.
XRP / USD
The yield from support of $ 0.2295 in XRP reached a moving average barrier and from there the price reversed. Bears are currently trying to push the alt currency below its support zone at $ 0.2295 – $ 0.219712.
If this succeeds, the XRP / USD pair might initiate a new downtrend that could reach $ 0.19. A drop in the 20-day moving average ($ 0.24) and the RSI below 38 indicate that the bears are in control.
However, if the bulls are able to defend the support area and push the pair back above the moving average, this will indicate an accumulation at lower levels. In this case, the couple can stay in the area for several more days.
BCH / USD
Bitcoin Cash (BCH) has turned away from the $ 272 resistance once again, and the bears are currently trying to push the price below the 20-day moving average ($ 258.58) and close to supporting $ 253.14.
If the bears manage to do so, the Bitcoin Cash / USD pair could drop to the next 50-day SMA support ($ 240.57).
Although the moving averages are still rising gradually, the RSI has broken outside the symmetrical triangle and fell near the midpoint. This indicates that the bears are trying to return.
This downward trend may be invalid if the pair bounces off the 20-day moving average and breaks the $ 272-280 resistance zone.