Let's Talk About Blockchain and Future (Regulatory Digest, Dec 28 — Jan 09)

Japan and Hong Kong are considering ETFs, Japan banks may issue own currencies, positive developments from India, Malta and Dubai having intentions to become 'blockchain'-territories, new regulation by Texas, cautions on Bermuda's draft regulation, and Israeli official's negative opinion

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US regulation against Bitcoin could be the catalyst for the next upswing

In a recent briefing held by the U.S. Secretary of the Treasury Steven Mnuchin, the American government revealed its stance on cryptocurrencies and the efforts it will carry upon to regulate Bitcoin because of its use in criminal activity and the threat it poses to the financial system. “This is indeed a national security issue,” Sec. Mnuchin said on the need for more regulation in the crypto space. “We will not allow digital asset service providers to operate in the shadows.” https://t.co/03CEzStDZE pic.twitter.com/zykiOLkm96 — Bloomberg Crypto (@crypto) July 15, 2019 Yet BTC surged 4.5 percent after the statements were made by the U.S. government official, which according to the head analyst at Fundstrat Global Thomas Lee, could be a sign of confidence about the underlying fundamentals behind BTC that allow it to function in a decentralized way without the need of regulatory oversight. Bitcoin seems comfortable with statements made by #Mnuchin regarding Crypto and KYC/AML. – White House wants fair ground rules but does not seem intent on further action at this time. – $BTC rise shows market comfortable with this Cc: ⁦@stevenmnuchin1⁩ pic.twitter.com/muHV1RFoxK — Thomas Lee (@fundstrat) July 15, 2019 Although the news comes at a time when  Bitcoin has retraced 25 percent from the high of $13,200 on July 10, it could be the catalyst for a further upward advance. Bitcoin Technical Analysis As it was foreseen, the break below the 23.6 percent Fibonacci retracement zone on the 3-day chart led to a drop-down to the 38.2 percent Fibonacci retracement level and the support trendline, which are both acting as barriers containing the price of Bitcoin from continuing depreciating due to the high concentration of demand around this area. Even though these two major support clusters could be able to hold and bounce off BTC’s market valuation back to the 23.6 percent Fibonacci retracement point or higher, moving below them could take this cryptocurrency to the next level of support around $8,500 and $7,240. TradingView: BTC/USD A similar scenario is presented on the 1-day chart where an ascending parallel channel has been developing since mid-December 2018. Now that Bitcoin reached the bottom of the channel, a rebound to the middle or even the top of the channel could be expected. However, due to the longevity of this ascending parallel channel a break below it could accelerate the selling pressure behind BTC significantly dropping its price down to at least the 50 percent Fibonacci retracement level as it can be seen in the 3-day chart. TradingView: BTC/USD Overall Sentiment Despite the sharp downturn that Bitcoin experienced over the last week that took many analysts by surprise including Tone Vays who turned bearish less than 24 hours after becoming bullish, there are multiple signs that could be predicting a rebound to previous or even new highs. Related: Donald Trump: Bitcoin not money, value based on thin air, facilitates unlawful behavior The criticism that Bitcoin has faced in the last few days following President Trump’s derisive tweet about it does not seem to affect the potential this cryptocurrency has and could represent a pivot point since more Americans will become aware of its existence. As it can be seen on the 3-day chart as well as in the 1-day chart everything seems to point out that BTC could soon regain at least 20 percent of its value within the next few days. Regardless, investors must pay close attention to the 38.2 percent Fibonacci retracement level because if it fails to hold the price of this cryptocurrency it may take it back to $8,500 or lower.   It is worth noting that even with the few corrections that Bitcoin has gone through since it started surging in early February, in the long-term this cryptocurrency remains bullish. In the 1-month chart, for instance, the MACD recently had a bullish crossover, the Parabolic SAR positioned itself below the price of BTC, and the TD Sequential Indicator is on a green five out of nine. Thus, traders must be aware that trading against the bigger trend poses an extreme risk. TradingView: BTC/USD The post US regulation against Bitcoin could be the catalyst for the next upswing appeared first on CryptoSlate.

Analysts Believe Bitcoin Looks Bullish Despite Growing Fears of a Trump Ban

Bitcoin and the aggregated crypto markets have faced an extension of the downwards pressure that they have been battling with over the past several weeks, which briefly sent BTC back into the four-figure price region before it found some buying pressure that allowed it to climb slightly higher. Analysts are now noting that BTC is nearing a price level at which it may reverse its recent downtrend and continue its upwards ascent, but this sentiment comes at a time where fears are growing regarding US President Donald Trump possibly banning Bitcoin. Fears Regarding a US Bitcoin Ban Grow, But Are They Realistic? At the time of writing, Bitcoin is trading down nominally at its current price of $10,555, which is down slightly from its daily highs of $10,700 but is up from its recent lows of roughly $9,900. The downwards pressure that has led Bitcoin back towards the four-figure price region was first sparked when the crypto sharply rose to $13,800, which proved to be an unsustainable rally that subsequently led to an extended period of sideways trading. Despite this, many analysts and mainstream news networks have attributed BTC’s recent bout of volatility to President Trump’s criticism of the cryptocurrency, which has since sparked fears regarding either a ban on Bitcoin or an imminent regulatory crackdown. Alex Krüger, a popular economist on Twitter who focuses primarily on cryptocurrencies, spoke about the plausibility of a ban on BTC in the US, noting that although it is feasible, it is highly unlikely. “TL;DR: A Bitcoin ban in the US is feasible. Ban could come via a Trump executive order. Ban could be over-turned. Probability of a ban is extremely low. Probability increased last week. Regulatory risk keeps many institutions away. A ban would see $BTC crash rapidly,” he explained in a recent tweet. 16/ TL;DR – A Bitcoin ban in the US is feasible– Ban could come via a Trump executive order– Ban could be over-turned– Probability of a ban is extremely low– Probability increased last week– Regulatory risk keeps many institutions away– A ban would see $BTC crash rapidly pic.twitter.com/VEz5y58arL — Alex Krüger (@krugermacro) July 15, 2019 Will Fears Contribute to Downwards Pressure on BTC, or Will Bull Trend Persist?  Importantly, as Krüger noted, even the slight possibility of a US crackdown on Bitcoin and cryptocurrencies could be enough to hinder any positive price action, as institutions and other investors may be weary of the markets. Despite this, analysts are noting that the crypto’s positive reaction to its brief dip below $10,000, and its current push towards its next level of resistance, could be a positive sign. “$BTC Update: Current levels that I’m watching on the chart,” Josh Rager, a popular cryptocurrency analyst on Twitter, said, while referencing a chart that shows that BTC is currently just below its next resistance level. $BTC Update Current levels that I'm watching on the chart Explain it in more detail at https://t.co/6DgXwzJSVt pic.twitter.com/zNQYmkfWR1 — Josh Rager (@Josh_Rager) July 15, 2019 As fears surrounding a regulatory crackdown fade with time, it is highly likely that the impact of President Trump’s negative comments on Bitcoin will have a negligible effect on the markets. Featured image from Shutterstock. Analysts Believe Bitcoin Looks Bullish Despite Growing Fears of a Trump Ban was last modified: July 15th, 2019 by Cole PetersenThe post Analysts Believe Bitcoin Looks Bullish Despite Growing Fears of a Trump Ban appeared first on NewsBTC.

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