Bitcoin Had Broken out from Short-Term Pattern

Jenson Nunez
-
0

BTC has fled from an inverse pattern; the daily RSI escaped from a descending resistance line.

Bitcoin (BTC) has been moving upwards since June 18 and finally managed to step away from an inverse pattern on July 7.

BTC has been decreasing below a descending resistance line since April 5. The situation caused a slight rejection on June 7, which led to a rate of around $17,622 on June 18. The price suffered a couple of bounces afterward and has been increasing its price since that event, creating a higher low on July 3.

Another curious improvement is the daily RSI escape from a descending resistance line. The line had previously been in the same place since March 29. Such RSI escape from that position often precedes a price breakout. So, BTC has a slight possibility to step away from its line, which gets positioned at $22,500.

If a breakout takes effect, the price could suffer an increase to $29,400, the 0.382 Fib retracement resistance level.

Since April 2021, the RSI has broken loose from the descending trendlines twice; the first time RSI experienced this phenomenon led to a 111-day upward movement in which the price experienced a high peak registered at 121%; the second one led to a 29% upward movement that got materialized over 60 days.

Short-Term Breakout

The six-hour chart presents that BTC went away from what looks like an inverse pattern. This situation shows an optimistic scenario that often leads to optimistic trend reversals.

A movement that goes through the entire height of the pattern would take the price to $25,000. Currently, the price is at the $22,700 resistance area, which takes effect simultaneously with the previously defined descending resistance line. If the price manages to get clear, the rate of increase will experience an increasing rate.

Future BTC movement

Since the descending resistance line began on April 5, the price went through a five-wave downward movement.

As for a Bitcoin’s potential price path if it continues along the downtrend, Crypto Market Analyst Tony revealed through a study what could be a worst-case scenario leading BTC to bottom out to a figure of $12,000.

The analyst said he does not think users would see the start of the next push until late next year and a new bull run peak until 2024-2025. He said he got already prepared to deal with $22,000-24,000 prices.

By; Jenson Nuñez

Over Half of Crypto Investors Prefer to Hold as the Prices of Bitcoin and Altcoins Plummet

Alexander Salazar
-
0
Over Half of Crypto Investors Prefer to Hold as the Prices of Bitcoin and Altcoins Plummet

Retail cryptocurrency investors have been wary about buying during the current decline in the price of BTC. However, 55% of those who had already acquired crypto assets prefer to hold amid volatility, according to a survey.

Cryptocurrency and equity markets are bearish, and few reasons drive investors to buy Bitcoin. Meanwhile, lending platform Celsius has paid all its debt and avoided a massive sell-off.

Many decentralized finance (DeFi) protocols and cryptocurrency investment funds have collapsed, while BTC is trading 60% below its all-time high. However, some positive data indicate that the market might be ready to enter a consolidation phase.

Crypto Investors Refuse to Sell their Holdings

A recent survey by the market research platform Appinio showed that over half of cryptocurrency investors maintained their holdings. Despite the collapse in prices and the beginning of the bearish market, only 8% choose to sell their coins.

That behavior suggests that the investment conviction of most cryptocurrency holders is still firm. While 33% of US investors prefer to buy crypto assets, 40% believe Bitcoin will offer the best opportunity in the next three months.

American Crypto Investors Resist despite the Market Collapse

Despite the drop in the overall financial markets, 65% of those US investors surveyed remain confident in keeping their investments.

Concerning their most pressing short-term concerns, 66% of the respondents mentioned rising inflation. In addition, 39% highlighted the current state of the world economy, while 34% referred to international conflict.

Callie Cox, an investment analyst at eToro in the US, expressed his position on those concerns. He believes their continued uncertainty and the cost of living and housing have created headwinds for investors.

Cox said that investors of all generations demonstrate a maturity and understanding level, not letting emotions dictate crucial monetary decisions.

The Price of Bitcoin Enters Oversold Territory

Besides the resistance by crypto investors, various on-chain metrics suggest that the market has reached oversold territory and is ready for consolidation.

The MVRV Z-Score combines Bitcoin Market Value, Realized Value, and Z-Score. That indicator has helped identify when BTC is grossly overvalued or undervalued regarding its fair price.

Those periods when a red Z-Score enters the lower green band have represented excellent opportunities for buying BTC. The same has happened when the market price has dropped below the realized price.

The green areas on the above chart represent periods in which the price of Bitcoin has been low. They may represent an excellent opportunity for buying the crypto asset cheaply.

The time spent in bearish market conditions varies and can become lengthier, so investors should not base their decisions on only one metric or indicator.

BTC is trading at around USD 21,676 and has accumulated a 5.5% gain over the last seven days. While its daily trading volume is above USD 25.69 billion, its market capitalization is about USD 413.76 billion, according to CoinGecko.

By Alexander Salazar

A Report Highlighted that Gold was 40% Better than Bitcoin as an Investment in 2022

Jenson Nunez
-
0
A Report Highlighted that Gold was 40% Better than Bitcoin as an Investment in 2022

The comparison revealed in the report shows that the bear market harmed Bitcoin hard in 2022, making gold a better item for investors to invest in according to its appreciation as a store of value.

A report revealed by the Finbold news outlet highlights that even though many often describe Bitcoin as the replacement for gold, the performance of the precious metal in the first markets was much more valuable than that registered by the digital currency since the beginning of 2022.

Gold Posts Better Gains than Bitcoin so Far in 2022

These figures appeared in a recently revealed report, detailing that the return on investment thrown by Bitcoin this year is 40.4% below that of the gold’s performance in the most prominent markets. The comparison details that in addition to the precious metal, platinum also left the digital currency behind in this index, reflecting juicy gains of 39.4% in the same period.

Among other information, according to numbers launched by CompaniesMarketCap, gold continues to appear as the most prominent investment currency with the highest market capitalization.

Gold has at least USD 11.479 trillion, surpassing entities such as Apple, Amazon, and Google, trading at about USD 1,740 an ounce.

On the other hand, Bitcoin, after the fall in prices, registered a global capitalization of more than USD 415,930 million and appeared with a value of USD 21,700 per unit at the time of publication.

According to the improvements in the price of gold throughout the year, its price crumbled by 3.5% compared to July 7, 2021. Its price was lingering around USD 1,803 per ounce. Its best moment happened at the beginning of March of 2022, just when it approached USD 2,050 amid the concerning situation about the Federal Reserve statements about the US economy.

Bitcoin Price Crash and Crypto Winter

The results presented by Bitcoin get directly linked to the effects of the crypto winter since the drop in its price takes effect at a time when the digital asset market crumbled very strongly.

Although the price of Bitcoin approached high peaks near USD 70,000 in November 2021, from that point, the decadence began, which was especially fed by the crash of the Terra space due to the insolvency situation that damaged the stablecoin UST and the LUNA token.

This event impacted the crypto market in general, leading BTC to go to numbers below USD 20,000 per unit on many occasions and dragging with it a good part of the first altcoins, which lost approximately 70%. of their price concerning its all-time highs.

By: Jenson Nuñez

The US Treasury Addresses an Engagement with Foreign Cryptocurrency Regulators

Alexander Salazar
-
0
The US Treasury Addresses an Engagement with Foreign Cryptocurrency Regulators

The executive of President Biden required an interagency effort to develop policy recommendations to mitigate cryptocurrency-related risks. The US Treasury Department said it would engage with G7 policymakers and regulators to discuss creating a CBDC and integrating new technologies.

US President Joe Biden recently received a legal framework for regulating cryptocurrencies from the US Treasury Department. That set of rules would allow US government agencies to work with their foreign counterparts.

The US Treasury Department recently reported on that regulatory framework in consultation with several government agencies. They talked to the Secretary of State, the Secretary of Commerce, and the US Agency for International Development. The executive order issued by President in March required them to do so.

According to the US Treasury Department, the above framework aimed to encourage the development of digital assets. They stressed that they must respect the fundamental democratic values ​​of the United States. In addition, they said that they must guarantee the stability and security of the financial and monetary system worldwide.

The executive of President Biden required the US Treasury Department to lead an interagency effort to develop policy recommendations. The primary purpose of that work was to mitigate the risks associated with cryptocurrencies.

The government department stated it was necessary to create international cooperation between public authorities, the private sector, and other interested parties. They argue there are potential risks to investors due to uneven regulation, supervision, and enforcement across jurisdictions.

The US Treasury Department Warns about the Alleged Risks of Cryptocurrencies

They cited inadequate regulation, supervision, and enforcement of anti-money laundering and anti-terrorism financing (AML/CFT) regulations in other countries. They pointed out that this calls into question the ability of the US to investigate illegal cross-border transaction flows of crypto assets. For example, they said this is the case with ransomware payments and other types of cybercrime-related money laundering.

Concerning international cooperation and coordination, the US Treasury Department said it would engage with G7 policymakers and regulators on cryptocurrency-related issues. They would also deal with creating central bank digital currencies and integrating new technologies into the international monetary system.

They said they would also work with G20 member countries to identify potential financial stability risks from crypto assets. Besides, they seek to push forward the regulation of cryptocurrencies and consult with members on macro-financial challenges.

Other regulatory agencies the US government will turn to include multilateral development banks. They will consult the Financial Stability Board, the Financial Action Task Force, the Organization for Economic Co-operation and Development, the International Monetary Fund, and the World Bank.

The US Treasury Department stated that the US would explore opportunities for joint experimentation on digital asset technologies, market innovations, and CBDCs. They think that those allies and partners will allow them to increase their shared learning on how to develop systems meeting their shared policy objectives.

In mid-March, President Joe Biden issued an executive order to establish a unified national policy for cryptocurrencies. It required coordination and consolidation among US government agencies and departments to achieve their goals in that regard.

Besides the recommendations by the US Treasury Department, the order calls on the Federal Reserve to investigate the development of a CBDC. In June, the Justice Department released a report on international law enforcement cooperation to prevent the illicit use of cryptocurrencies.

By Alexander Salazar

The Bank of England Requests for an Improvement in Regulation for Cryptos Amidst Uncertainty About the Resignation of Johnson

Jenson Nunez
-
0
The Bank of England Requests for an Improvement in Regulation for Cryptos Amidst Uncertainty About the Resignation of Johnson

Highlighting a $2 trillion depletion in the total crypto asset market capitalization, the Bank of England (BOE) emphasized the need for stricter laws and regulations of the digital assets environment.

The Bank of England Financial Policy Committee expressed that the volatility of prices linked to digital assets in recent months boosts vulnerabilities connected to the crypto market, as highlighted by Bloomberg.

The market capitalization of digital assets currently holds its position at around $1 trillion. It was nearly a peak of $3 trillion in November of last year.

Last month, Agustin Carstens, CEO of the Bank for International Settlements (BIS), highlighted that the bitcoin market weak points registered earlier are now happening, including liquidity mismatches.

Regarding the cryptocurrency market and its constant fall, the British Central Bank expressed that this situation highlights the requirement for better law enforcement and regulatory frameworks to handle the developments in these evolving markets.

The UK Faces Uncertain Moments Due to the Resignation of the Prime Minister

Regarding the situation in the UK, Prime Minister Boris Johnson leaves his position in UK politics by saying he regrets not being able to continue leading these projects. He also expressed that the Conservative Party would find another leader to work for the country.

Johnson would continue as prime minister until the fall, once his successor gets decided by the party conference in October. He expressed that he wishes him all the best.

During his speech, Johnson expressed that he was sad about the resignation while he thanked the British citizens for giving him the privilege to lead the country’s interests.

Johnson assumed the most prominent position in the British Government as the representative of the Conservative Party on July 19. It also did so after the resignation of the then Prime Minister, a conservative Theresa May.

Early in the morning, the news highlighting that Johnson resigned appeared in a conversation with the leader of the conservative deputies without portfolio, Graham Brady. More than 50 Johnson administration representatives have also abandoned their positions.

The UK and its Relationship with Digital Assets

In April, The British Ministry of Economy revealed strategies to formalize some stable cryptocurrencies as a means of payment in the United Kingdom within a package of procedures to make the European nation a worldwide center for investment and development of technologies connected to digital currencies.

The British Government described stable currencies as digital assets whose value connects directly to traditional currencies such as the US dollar, offering effective payment procedures and expansive options for consumers.

By: Jenson Nuñez

The Uruguayan Central Bank Raises the Monetary Policy Interest Rate Eighth Times

Alexander Salazar
-
0
The Uruguayan Central Bank Raises the Monetary Policy Interest Rate Eighth Times

The BCU anticipated at least two increases of 50 basis points, the next of which will be in August. On Banco República (BROU) boards, the US dollar rose by five-hundredths, closing at 38.85 for purchase and 41.25 for sale.

The Central Bank of Uruguay (BCU) recently raised the monetary policy interest rate by 50 basis points to 9.75%. They stated that this increase ratifies the commitment to continue going through the contractionary phase of monetary policy.

The financial institution noted the assessment of different aspects of the international and domestic situation for the monetary policy decision. That has been the eighth consecutive increase since August 2021, when the reference rate rose from 4.5% to 5%.

Uruguayan inflation dropped slightly to 9.29% over the 12 months ending in June. It went down from 9.37%, registered in the interannual measurement of May, a value similar to that of March and April. The consumer price index (IPC) is still far from the target range, which will be between 3% and 6% from September.

The US Dollar Rises to Its Highest Value in a Month

The war in Ukraine and the sanctions against Russia have further pressured high global inflation. Besides, interest rate hikes by central banks slow down the economy, while many investors fear this strategy will cause a recession. That situation led to global greed for the US dollar, which also occurred in the financial market of Uruguay.

The price of the interbank dollar in the local market increased by 0.57% and traded at around 40.17 Uruguayan pesos (UYU). That value is the maximum in over a month, as it was at UYU 40.20 on May 30th.

The US dollar has risen by 3.75% over the last week but has dropped by 5.31% over the past year. It has accumulated positive figures in two consecutive sessions, compared to previous days.

Over the last week, the volatility was 25.37%, a figure higher than the annual volatility data (11.48%). Therefore, it shows more significant changes than the general price trend.

On average, citizens have exchanged the US dollar at a maximum of UYU 44.73, while its lowest level has been UYU 38.51.

Investors have made 47 transactions through the Electronic Stock Exchange (Bevsa) screens for USD 23.9 million. On the Banco República (BROU) boards, the US dollar rose by five-hundredths, closing at 38.85 for purchase and 41.25 for sale.

Uruguay Has Become a Risk Country

The country risk measured through the UBI Index rose by four basis points and closed at 138 units.

The increase included a mix of the price of Uruguayan bonds and an increase in the value of US treasuries. The country’s risk rises by six basis points monthly and by 33 units yearly.

The call interest rate banks charge for overnight loans operated at 9.33%, practically within the target of the Central Bank for the reference rate (9.25%).

Amid high-interest rates in Uruguay, the crypto market remains bearish with slight recoveries. Bitcoin (BTC) is trading at around USD 20,508 and has accumulated a 2.5% gain over the last 24 hours, according to CoinGecko.

By Alexander Salazar

1...733734735...1,654Page 734 of 1,654