Bitcoin Price Could Restart Rally if it Clears this Resistance

Marina Meza
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Bitcoin Price Could Restart Rally if it Clears this Resistance

Trading Bitcoin since its inception has been like riding a roller coaster, since its creation in 2009 by a person or group of people under the nom de plume Satoshi Nakamoto, it has been the first decentralized cryptocurrency in the market.

Bitcoin price is correcting lower from the $27,400 resistance. BTC could start a new rise if it is able to clear the $26,600 resistance zone. Bitcoin started a new fall after it failed to clear the $27,400 resistance.

The price is trading below $26,600 and the very simple 100-hour moving average. A key declining channel is forming with resistance near $26,580 on the hourly chart of the BTC/USD pair (Kraken data feed). The pair could attempt a further rise if it breaks above the $26,580 and $26,600 levels.

In any case, the effects of this debacle have been felt throughout the cryptocurrency industry, with cryptocurrencies selling off across the board.

That said, looking at the common picture, BTC has only given up a small portion of its 2023 gains and, from a technical perspective, this selloff was expected, and there is a high expectation of a possible continuing uptrend.

Bitcoin Price Retains Support

Bitcoin price was able to climb back above the $27,000 level. BTC even surpassed $27,200 before bears appeared near the $27,400 area.

A high formed near $27,368 before the price started a new decline. There was a move below the $27,000 support zone. The price declined below 50% of the Fibonacci retracement level of the upward move from the low of $25,368 to the high of $27,368.

Bitcoin price is now trading below $26,600 and in a 100-hour straightforward moving average. It is also forming a key descending channel with resistance near $26,580 on the hourly chart of the BTC/USD pair.

However, it holds support at $26,200 and the 61.8% Fibonacci retracement level of the upward move from the low of $25,368 to the high of $27,368. Immediate resistance is near the $26,580 level and the channel area. The next major resistance is near the $26,600 level. A close above $26,600 could send the price even higher, this is shown in a BTCUSD graphic published by TradingView.com.

The next key resistance is near the $27,000 level. A clear move above the $27,000 resistance could require a move toward the $27,400 resistance. Further gains above the $27,400 resistance zone could send the price toward the $28,500 resistance zone.

More Losses in BTC?

If the Bitcoin price fails to break above the $26 600 resistance, it could continue to decline, another decline. Immediate downside support is near the $26,200 level.

The next major support is near the $25,840 level, below which the price could gain bearish momentum. In the indicated case, the price could fall towards the $25,400 support.

Technical Indicators

Hourly MACD: MACD is now gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index): the RSI for BTC/USD is below the 50 level.

Main support levels: $ 26,200, followed by $ 25,840.

Main resistance levels: $ 26,600, $ 27,000, and $ 27,400.

By Marina Meza

The Latest BTC Rally Could Leave Investors Feeling Elated, But for How Long?

Audy Castañeda
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<strong>The Latest BTC Rally Could Leave Investors Feeling Elated, But for How Long?</strong>

The BTC funding rate declined just before its recent bullish rally began. Bitcoin derivatives market indicators were bullish, as were other on-chain metrics.

Bitcoin [BTC] surprised investors with price gains, which were hit hard before. The episode SEC vs. Binance caused problems in the crypto space, so almost the entire market witnessed a slight price correction.

To set the record straight, the SEC recently charged Binance and its founder, Changpeng Zhao, with operating a network of deceptions. Because of this, the government watchdog accused Binance of 13 crimes.

A Look at the Stage

Although BTC’s weekly price action was marginally red, its value has risen more than 4% in the last 24 hours. According to CoinMarketCapital BTC was trading at $26,856.52 with a market capitalization of over $520 billion.

Recent CryptoQuant analysis pointed to an interesting development that was occurring at the time when the BTC price was preparing for the latest pump. Eralp Buyukaslan, author and analyst at CryptoQuant, revealed in his latest analysis that this could have played a role in the bullish rally.

Retail investors’ short positions have been rising sharply for hours. While the price of BTC fell, its funding rate turned negative. Historically, BTC’s price has moved at the opposite rate of its funding rate.

The Derivatives Market Gave Many Clues

A look at data from Coinglass revealed that BTC open interest was on a downtrend. A nosedive in the metric usually means that the market will witness a trend reversal, and that is what happened this time when the price of Bitcoin rose.

On top of that, the BTC long/short ratio also recorded a rally. A high long-short ratio indicates positive investor expectations, giving hope for a continued uptrend in the coming days. BTC’s taker buy/sell ratio was also green, suggesting that buying sentiment was dominant in the derivatives market.

Bitcoin Investors Are Now Confident

Thanks to the rally, market sentiment around BTC turned positive. This was evident by the increase in sentiment weighted for BTC. However, it was interesting to see its popularity waning, as its social dominance waned over the past week.

What Does On-Chain Data Have to Say?

A look at CryptoQuant data revealed that Bitcoin was not under selling pressure. The currency reserve was declining, which is a typical bullish sign.

Furthermore, the supply of BTC on exchanges decreased while its off-exchange supply increased. The BTC binary CDD noted that long-term holder movements over the past seven days were lower than average. This reflected their willingness to keep their assets.

Going Beyond: BTC Technical Indicators

BTC needs to move through the $26,637 pivot to target the first major resistance level (R1) at $27,116, and Wednesday’s high of $27,393. A return to $27,000 would indicate a prolonged bullish session. Crypto news leads and economic indicators need to be crypto-friendly to support a prolonged rally.

A move through the 50-day EMA ($26,773) would support a break of the 100-day EMA ($26,943) and R1 ($27,116) to give the bulls a run to the 200-day EMA ($27,204). and R2 ($27,873). However, a failure to move through the 50-day EMA ($26,773) would leave S1 ($25,880) in the offing. A move through the 50 day EMA would send a bullish signal.

By Audy Castaneda

What is the SEC’s Request for a Restraining Order Against Binance about?

Audy Castañeda
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What is the SEC’s Request for a Restraining Order Against Binance about?

The United States Securities and Exchange Commission (SEC) increased the scale of its attack against the Binance cryptocurrency exchange.

The escalation of the SEC conflict against the big cryptocurrency exchanges (Binance and Coinbase) continues underway. On Monday, the commission attacked Binance for the first time, suing 13 counts that also include its CEO, Changpeng Zhao. But that was only the first part of the matter.

On Tuesday, while the new attack was still being debated, this time against Coinbase, the agency took another crackdown step. The SEC applied to the Columbia Court for an emergency temporary restraining order against Binance. It includes an immediate freezing of the company’s assets.

It is worth clarifying that this measure, if enforced by the court, only affects Binance US assets. In this way, the international company, with its exchange, will not be affected. This is much more serious than it already seems since the platform could suffer a massive withdrawal of funds from scared investors.

SEC Cracks Down on Binance

Although the SEC has an open war against cryptocurrencies, the problem with Binance seems to be particularly important. Consequently, it is the main cryptocurrency trading exchange in the world and on which many projects and investors in the sector depend. Therefore, the regulators seem to bet on nipping cryptos in the bud.

It is clear that the SEC wants to destroy cryptocurrency trading within the United States. The secretary of that institution, Gary Gensler, made statements that leave no room for further interpretations about his intentions.

“We don’t need another digital currency. We already have digital currency. It’s called the US dollar. It’s called the euro or it’s called the yen, they’re all digital right now,” the official said. This seems to bring to life the crypto community’s fears that the agency has an interest in boycotting the innovation represented by digital currencies.

Either way, Gensler has the power to do so under any argument. The all-out attack on Binance by the SEC seems to clearly point in that direction. The next step will be for the exchange to show that it is being handled correctly. The future of the company probably depends on the latter if it continues globally, or suffers a fate similar to that of FTX.

Restrictive Request Details

The SEC’s crusade against Binance and the crypto market, in general, seems to be far from over. The digital currency trading industry is on high alert. During the day on Tuesday, the co-founder of Gemini, Tyler Winklevoss published harsh words against the agency. He said that once upon a time an SEC indictment meant “you were doing something wrong.” He then pointed out that now it is just the opposite.

In any case, the regulators requested a total of 8 measures against Binance, Binance US, and Changpeng Zhao. As already stated, the actions include freezing the assets of the company (Binance US). Added to this is the repatriation of fiat money and cryptocurrencies held by or for the benefit of US clients.

In this action against Binance, the SEC lists the crypto firm’s alleged infringing conduct. They highlight: “breach of US regulatory laws, evasion of regulatory oversight, and open questions about various financial transfers and custody and control of client assets.”

By Audy Castaneda

UK Regulator Imposes Stricter Rules on Crypto Advertising

Audy Castañeda
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<strong>UK Regulator Imposes Stricter Rules on Crypto Advertising</strong>

Taking a page from its own playbook, the UK regulator modeled the new regulations on those it currently imposes among known high-risk investments in the traditional finance arena.

The UK regulator, the Financial Conduct Authority, has stepped up its efforts to protect consumers against potential loss when investing in crypto assets and the companies that manage them.

On June 8, the financial market watchdog, which oversees 50,000 companies in the UK to ensure fair, honest, and competitive financial markets, announced that it has introduced new marketing rules formulated specifically for companies related to cryptocurrencies.

What the UK Regulator Wants: Clear Risk Warnings and “Cooling Off” Period

In its drive to promote consumer protection, the highly touted regulatory body has chosen to view cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and Litecoin, among many others, as high-risk and restricted mass-market investments. In doing so, the UK regulator will now require crypto companies to add detailed risk warnings in their various marketing campaigns such as advertisements.

Meanwhile, crypto asset owners or users will no longer be able to enjoy earning rewards by recruiting people to buy digital currencies using a particular platform, as the “refer-a-friend” scheme will now be prohibited.

Additionally, the financial regulator came up with the idea to impose a 24-hour “cooling off” period for first-time crypto investors. This means that new customers will have to wait at least one full day after successfully registering a valid merchant account before they can make any type of purchase.

Sheldon Mills, chief executive of the UK regulator’s Competition and Consumer Division, offered a brief explanation on the enforcement of these rules which will come into force on October 8, 2023:

“It is up to people to decide whether they buy crypto. But research shows many regret making a hasty decision. Consumers should still be aware that crypto remains largely unregulated and high risk.”

Not Without Resistance

While it is within the mandate of the UK regulator to formulate regulations that will protect consumer welfare, some crypto companies within the UK refuse to turn around and accept what is to come.

CryptoUK, an in-country trade association for the crypto industry that observes self-regulation, seems to need more reasons why the “cooling off” period should last 24 hours. According to COO Su Carpenter, his organization would greatly appreciate the opportunity to review the findings that contain strong evidence that the 24-hour “cooling off” period is really necessary.

In addition, Carpenter said they hope that the relevant regulations being enforced will allow consumers to confidently transact and invest in crypto assets, as they have other use cases than just being investments.

It is worth noting that digital asset regulation in the UK is partly overseen by the country’s Financial Conduct Authority, whose aim is to ensure that crypto businesses comply with anti-money laundering and counter-terrorist financing requirements.

The UK government has for some time been advancing the Financial Services and Markets Bill, legislation that proposes to regulate stablecoins as well as support “safe cryptocurrency adoption” in the country.

By Audy Castaneda

El Salvador’s Bitcoin Bill is Two Years Old, How Has the Country Fared Since?

Audy Castañeda
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<strong>El Salvador’s Bitcoin Bill is Two Years Old, How Has the Country Fared Since?</strong>

Since September 2022, BTC works as a valid currency in El Salvador. However, adoption has certainly not been as fast as expected.

On June 5, 2021, El Salvador made waves in the financial space when its bill to make Bitcoin a legal tender in the country was first made public. Since then, the country has fully implemented BTC as legal tender in the country, in addition to investing a significant amount in the digital asset. This is how the country has fared ever since.

El Salvador Downside in its Bitcoin Bet

Shortly after President Nayib Buckle approved the bill and made Bitcoin legal tender in El Salvador, the country would start buying BTC in large quantities. The first purchase saw the country purchase a total of 400 BTC for $18.724 million at an average price of $46,811 on September 6, 2021, one day before BTC officially became legal tender in the country.

In the following months, Bukele would redouble his decision to invest in the cryptocurrency with funds from the country, ignoring warnings from financial institutions such as the International Monetary Fund (IMF) to stop doing so. The next purchase occurred just a day later, on September 7, with a purchase of 150 for approximately $6.9 million.

El Salvador has continued to buy BTC on a semi-consistent basis ever since, bringing its total BTC reserve to 2,381, as of its last purchase on June 30, 2022, of 80 BTC at an average price of $19,000 for a value of $1.52 million.

However, El Salvador’s dollar cost average (DCA) has not helped its position so far. The country has spent a total of $103,233,360 on its BTC purchases since 2021 at an average price of $43,357.

At current prices, El Salvador’s stash of BTC is worth around $61.3 million, which means the country is suffering a $40 million loss on its BTC investment.

BTC adoption in El Salvador

Since September 2022, BTC has operated as legal tender in El Salvador, allowing residents to pay for goods and services using the cryptocurrency. However, the adoption has not been as fast as expected, since the US dollar continues to dominate the country.

Following the official 2021 announcement, there were reports of protests over the use of BTC as legal tender, with many citing the security and economic risks of using a volatile digital asset as legal tender. And even today, those concerns are still at the forefront of lawmakers’ minds.

In May, US Senators James Risch, Bob Menendez, and Bill Cassidy introduced a bill to require El Salvador to report BTC adoption in the country. This bill, called the Cryptocurrency Responsibility Law in El Salvador, proposes to assess “the risks to cybersecurity, economic stability, and democratic governance in El Salvador.”

President Bukele has not yet responded to this bill, which has given a 90-day window for the plan to be presented to the congressional committees involved.

On June 5, Reuters reported that El Salvador signed a public-private partnership to invest $1 billion in creating a large Bitcoin mining farm. Volcano Energy confirmed this, revealing that the country will first invest $250 million in the project, as it seeks to build one of the largest BTC mining farms in the world.

By Audy Castaneda

Is Bitcoin Really a Better Choice over other Assets?

Marina Meza
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<strong>Is Bitcoin Really a Better Choice over other Assets?</strong>

In the digital era in which we live, the world of finance has undergone a significant transformation. Among the various assets available, bitcoin, commonly known as BTC, has emerged as a popular choice.

But is it really better than other assets? In this article, we will explain in detail the characteristics of bitcoin and the key aspects that differentiate it from other traditional assets.

As we unravel the intricacies of this topic, we will discover whether bitcoin is, in fact, a better option compared to other conventional assets.

Before we begin, it is necessary to define what bitcoin is. Bitcoin, the first decentralized cryptocurrency, was created in 2009 by a person or group of people under the pseudonym Satoshi Nakamoto.

Unlike traditional fiat currencies, such as the U.S. dollar or the euro, bitcoin is not backed by any government or central entity. Bitcoin operates on a peer-to-peer network, using blockchain technology to record and verify all transactions made.

In view of this, we talked to Ignacio Gimenez, Business Director at Lemon, and he told us that: “Bitcoin is the evolution of money, and the gateway to the exponential development of blockchain and Web3. It is an immutable, public and transparent monetary policy. Not only did it become a store of value, but it has been the largest generator of wealth. Since it has been traded, it has gone up more than a million times”.

Advantages of Bitcoin as an Asset

Regarding the advantages of bitcoin as an asset, it should be taken into account that in relation to the decentralization and privacy offered by the crypto-asset, other assets cannot match it. By not depending on intermediaries such as banks, bitcoin transactions are carried out directly between the parties involved, which guarantees greater privacy and control.

Another of bitcoin’s most outstanding features is its limited supply. There is a maximum of 21 million bitcoin that may exist in total.

In addition, every so often an event known as “halving” occurs, in which bitcoin miners’ rewards are halved. This contributes to scarcity and, potentially, to an increase in its value in the long term.

Concerning this, Ignacio posed that, Why is it the best store-of-value technology? First, because of its predictability and limited supply of 21M Bitcoins. The fact that I can predict how much my present effort will be worth for future enjoyment. Between now and the year 2140 we can know how many Bitcoins we will see in distribution with a 10-minute on-chain update, Gimenez declares.

“Second, energy. We are storing money in something very precious like energy. This ends up not only securing the network but also fulfilling a lot of use cases that allow us to consider the asset as a big battery that will keep all systems and projects optimized”.

Additionally, it is worth mentioning that the Bitcoin network enables fast and efficient transactions compared to traditional financial systems. Moreover, being a digital currency, bitcoin transcends geographical borders and facilitates international transactions without the complications and delays associated with conventional banking systems.

By Marina Meza

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