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BTCUSD Remains Stable as Japan Mulls Its Own Digital Currency

Bitcoin price

BTCUSD remains stable at 8,350 in muted Friday trading, despite news from Japan that lawmakers there are pushing the government to create a national digital currency. Speaking to Reuters, a member of Japan’s Ruling Party has indicated that a private-public initiative to create a centrally backed digital currency (CBDC) for Japan. Norihiro Nakayama said that the effort is to counter the attempts by China to create a digital Yuan. The proposal, being developed by 70 members of the ruling Liberal Democratic Party, could be submitted to the government as early as next month. 

Meanwhile, BTCUSD did not react to the news in what has been a quiet Friday of trading for Bitcoin. 

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Technical Outlook for BTCUSD

The BTCUSD pair continues to trade between the range defined by the 8900 resistance level above and the 8000 price level below. At the current price, minor support which corresponds to the highs seen on 8 June, 2 October and 10 October 2019 continues to hold up the price, preventing further downward push. 

However, a breach of 8350 to the downside paves the way for another retest of 8000. A breakdown of 8000 following renewed selling pressure could then target the 7420 price level, where previous lows of 22 May, 4 June and 23 October are located. 

On the flip side, price activity may continue to trade within the identified range for the weekend if 8350 holds firm. However, a lot of significant price moves typically occur early in the new week; this has been the pattern for the last four months. Therefore, a break of 8900 to the upside may be able to target and reach the 38.2% Fibonacci retracement of the Nov 2017 swing high to the Dec 2018 swing low at 9485.