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Bitcoin Price Analysis: Weekly TA Reveals Bulls Under Pressure

As Bitcoin closed the week on another ‘Bloody Sunday’ candle, which dropped to new 2019 lows, making yet another painful yet somewhat predictable reversal, we take a look at the price action and try to establish what we should be looking for with the week ahead.   


Weekly

Bitcoin price 00 closed the week at $3536, with the decline on Sunday largely reversing the gains made through the week.

Despite making lows on Sunday at $3481, a bounce back to a close at $3542 meant avoiding a new 2018 candle close low, with the weekly candle forming an inverted hammer, which is considered a relatively bullish sign.

Despite this, Bitcoin is still stuck in no man’s land with initial significant resistance overhead at $4,050 and support at $3200.

Daily

The daily chart shows a slightly clearer picture, illustrating that Bitcoin does have some preliminary support at $3500, which is now coming under some pressure and likely to be retested again at some point this week despite there being early signs of a tweezer bottom early on Monday morning.

The more concerning factor for the bulls is the continued declining resistance which ultimately suggests that any bullish move will be capped between $3700 – $3800 where there will be significant short interest.

This would imply that there is likely to be a test towards the lows at $3200s where we last saw significant buying interest and strong historical support when Bitcoin fell from $5,000 to $3,000 during 2017.

The question will be if it is tested, could it go on to complete a W shapedbottom or Adam and Eve, or will we look to new lower lows in this bear market.

4 Hour

The 4 hour chart shows that should there be a further decline, there may be a pit stop at the $3350 range which is the 78.6% retracement level from the move from the previous lows.

If tested, a strong bounce here would be a positive sign for the bulls but the main task remains; to break the declining resistance and the $4,000 handle.

All oscillators are drifiting sideways and  not really adding anything for the analysis so are not shown on that basis.

Market Sentiment

As reported previously, the balance of market sentiment remains bullish, with the leveraged bull positions out weighing the bears by 1.4:1, which is not positive for a bullish narrative while the price is declining.

As we have seen in previous senarios like this – the bulls are essentially exposed, which leads the author to believe that a hard test of the low $3,000s is likely given what has happened

Trade Bitcoin, Litecoin and other cryptocurrencies on online Bitcoin forex broker platform evolve.markets.  

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Ongoing U.S. Shutdown Casts Shadow on VanEck Bitcoin ETF Approval

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Ongoing U.S. Shutdown Casts Shadow on VanEck Bitcoin ETF Approval

The ongoing government shutdown in the United States could likely have a major impact on future developments in the crypto market. Moreover, this is the longest shutdown by any government in the U.S. which can continue further.

The crypto community is eagerly waiting for the SEC’s decision on VanEck Bitcoin ETF. The SEC has a deadline of February 27 for the approval. However, on Jan. 16, the SEC said that it has put all of its administrative activities on hold until the shutdown concludes.

But despite the U.S. government shutdown, VanEck seems to be unfazed and confident for its ETF application. VanEck believes that it has already laid a robust foundation for the SEC to eventually approve its ETF. In a word with CCN, VanEck’s director of asset strategy, Gabor Gurbacs said:

“I have done everything I can to build the right market structure for Bitcoin and digital assets”.

However, American lawyer Jake Chervinsky made a series of tweets to explain how the shutdown can affect the VanEck Bitcoin ETF approval.

Chervinsky Consider Several Pragmatic Conditions

Jake Cervinsky is an associate at Washington D.C. for international law form Kobre & Kim. He is also well-known within the crypto community for his opinions on how the U.S. Securities laws affect the cryptocurrency market. On Friday, January 18, Chervinsky tweeted:

“The SEC’s final deadline to approve or deny the ETF is February 27. That’s 240 days after the ETF proposal was first published in the Federal Register. The SEC doesn’t have the power to extend the 240-day deadline. The statute absolutely prohibits any further delays. By law, that means if the SEC fails to make a decision by the February 27 deadline, the ETF will be automatically approved.”

However, Chervinsky says that even though the SEC remains out of business beyond February 27, it is “extremely unlikely” that the ETF will be automatically approved. With SEC putting its business on hold, staff members that handle ETF cases from the Division of Trading & Markets, have to stay home.

However, Chervinsky says that SEC has still got a handful of staff members to deal with such cases. These staff members are responsible to take care of “activities necessary for a short period in order to ensure an orderly shutdown of operations.”

However, Chervinsky says that the SEC has already taken necessary action to avoid on missing its Feb 27 deadline. Citing an SEC document that mentions different action from the agency in case of shut down, Chervinsky says “if the shutdown continues to February 27, I think the ETF’s chance of approval is near zero”.

He further twitted:

Delay In Bakkt Approval Due to the U.S. Shutdown

The much-awaited launch of ICE’s Bakkt platform is around the corner. However, the SEC doesn’t deal with the approval of launching a new trading platform and its the task of the U.S. Commodities and Futures Trading Commission (CFTC). Chervinsky says that the U.S. shutdown won’t have any impact on the CFTC.

He notes that unlike the SEC the CFTC doesn’t have any deadline on approval of Bakkt proposal. “Unlike the SEC, the CFTC has no statutory deadline for making a decision on Bakkt, so it can delay as long as it wants. Don’t expect anything on Bakkt until after the shutdown (maybe months after),” Chervinsky wrote.

Ongoing U.S. Shutdown Casts Shadow on VanEck Bitcoin ETF Approval

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Washington State County Doubles Down on Cryptocurrency After Mining Bust

After the boom, backlash, and (partial) bust of Bitcoin in central Washington, one might expect an aversion to the technology. But instead, one authority wants to capitalize on the resources left in the aftermath, to promote new growth in blockchain.


A Story Sad To Tell

Central Washington’s story is not uncommon in the cryptocurrency world. A cool climate and a shed-full of cheap hydro-electric power attracted speculators from as far away as China. The new cryptocurrency gold-rush promised a rebirth for this sleepy rural part of the United States.

But when cryptocurrency prices dropped, so did the area’s fortunes. Companies over-leveraged through ambitious expansion plans, found themselves facing bankruptcy. While at the same time, the public backlash caused some authorities to take measures such as increasing electricity costs for miners.

But Douglas county has taken an alternative tack.

Speculate To Accumulate

Authorities there see huge potential in all the high-speed computing power and blockchain expertise leftover from the boom. By repositioning itself as a center of blockchain excellence, Douglas county hopes to benefit as the technology revolutionizes other industries.

Hydroelectric dam

Lisa Parks, executive director of the Port of Douglas county explains:

There is more to the cryptocurrency story than the boom and the bust. We have some unique assets that make our region appealing… Let’s figure out a way to capitalize on it.

But the proposed ‘Blockchain Innovation Campus’ is only part of the picture. In order to entice new development in the blockchain industry, Douglas county continues to encourage its existing cryptocurrency miners.

Bucking The Trend

Unlike neighboring Chelan and Grant counties, which essentially priced miners out of the market with energy-cost hikes, Douglas’s rate increase was far more modest.

The result of this has been continued investment from new mining operations. In November, Bitmain opened a $20 million mine in the region, near the town of East Wenatchee. And the county is trying to revive the mining operations of GigaWatt, which had become an unfortunate poster-boy for the area’s Bitcoin bust.

While some might expect a once-bitten twice shy attitude, having previously been burned, local authorities have a different outlook. As the next iteration of blockchain continues to develop, such an outlook should see them well placed for the next phase.

There is, after all, trusted wisdom in not throwing out the baby with the bathwater.

Will Douglas Country’s economy benefit from supporting the blockchain industry? Share your thoughts below!


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Venezuela: First Bitcoin ATM Opens ‘In 2 Weeks’ Amid Localbitcoins Shutdown Reports

Venezuela, the country seeing new Bitcoin trade volume records on an almost weekly basis, is to get its first ever Bitcoin ATM.


Cryptobuyer: ATM Already In Caracas

In an interview with local radio and news media network Union Radio, Jorge Farias, CEO of Panama-based Cryptobuyer, said the machine had already arrived in the country’s capital Caracas.

“We are going to install the first cryptocurrency ATM in Venezuela over the course of the next two weeks,” he told the network.

…We already have the equipment physically installed in Venezuela, in Caracas; it’s in its final test stage and we will then be making an announcement on social networks.

The pioneering move comes amid ever more difficult times for Venezuelans.

Venezuela's Central Bank Unveils App to Convert New Crypto-Pegged ‘Sovereign Bolivar’

As Bitcoinist variously reported, a toxic mixture of hyperinflation, travel and forex restrictions has made life for the average citizen often impossible.

At the same time, Venezuela’s government has pushed an agenda involving its state-issued cryptocurrency Petro, recently beginning to require certain payments – such as passports – only use the asset.

Petro has had a dubious reputation since inception, reports claiming that despite its peg to Venezuela’s $6 billion oil float, its backer in the form of state oil company PDVSA has $45 billion debts which undermine its status as a store of value.

Localbitcoins ‘Not Working’

It is thus little surprise that P2P Bitcoin trading has exploded, especially over the last six months of 2018.

According to the latest data from Coin Dance, the week ending January 5 was the second busiest on record for the Venezuelan Bolivar (VES) on Localbitcoins, with a total of 5.15 billion changing hands.

This was followed a dramatic drop for the week ending January 12, will social media commentators reporting the service was no longer accessible from inside Venezuela.

Cryptobuyer is first and foremost a merchant acceptance platform for Bitcoin (BTC), Litecoin (LTC) and Dash (DASH), and at present only lists a modest network of five ATMs in Panama City. Its operational machines cater to all three cryptocurrencies.

Worldwide, the number of Bitcoin ATMs continues to expand. A deal announced this week between the first US operator, Coinme, and change counter Coinstar, could see up to 20,000 extra locations appear in the US soon.

What do you think about Venezuela’s Bitcoin ATM? Let us know in the comments below!


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Wyoming Looks Determined to Legalize Bitcoin as Money

Wyoming is introducing a bill that will put cryptocurrency like Bitcoin on the same legal footing as money. The bill will also provide a precise classification of digital assets, especially for custody administration.


Cryptocurrency to Have the Same Legal Status as Money

Sponsored by Sen. Tara Nethercott (R-WY) along with five other state Senators and Representatives, the proposed bill titled “Digital assets-existing law,” calls for the proper classification of virtual assets. The bill also seeks to create a legal framework for virtual asset custody via banks instead of other financial institutions.

According to the bill, virtual assets fall under three categories: securities, assets, and currency. The bill sponsors believe that cryptocurrencies like bitcoin fall under the currency category giving them the same legal status as money.

With Bitcoin classified as money, BTC transactions can become interest-free according to Article 9 of the Uniform Commercial Code (UCC). This classification also extends property rights to cryptocurrency owners removing the need for intermediaries in peer-to-peer transactions.

Wyoming

Concerning Cryptocurrency Custody

Concerning custody, the bill seeks to create a framework for banks to act as qualified custodians of digital assets. Based on this framework, banks will offer digital asset custodial services akin to the type provided to mainstream securities.

Thus, banks offering such services will do so according to the SEC’s Custody of Funds or Securities by Investment Advisers. This means that such banks can offer cryptocurrency custodial services nationwide, which will be a step towards solving one of the nagging issues in the digital asset industry.

Speaking to Forbes about the benefits of the bill, Sen. Nethercott said:

The time is now to provide the pathway for blockchain and cryptocurrencies, and Wyoming has the nimbleness and responsiveness to the needs of these industries to respond accordingly to the growing and adapting landscapes of cryptocurrency.

Blockchain-Related Legislation in Wyoming

Apart from the Digital assets-existing law bill, the Wyoming State Legislature is also considering other blockchain-related pieces of legislation. Rep. Jared Olsen (R-WY) and Sen. Chris Rothfuss (D-WY) along with a group of other lawmakers recently introduced the “Corporate stock-certificate tokens” bill. If passed, it will allow companies to issue blockchain-based share certificates.

Back in December 2018, Wyoming reinforced its reputation as a blockchain-friendly when it passed the blockchain bank bill. Companies like Cardano have even announced plans to move to the state.

Do you think cryptocurrencies should have the same legal status as money? Let us know your thoughts in the comments below.


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