Bitcoin {BTC} breaches the 10.5k mark – Switzerland and U.S. politicians meet following release of LIBRA

After bears had brought BTC all the way down to $10,000 a trend reversal occurred. This had helped Bitcoin rally along with the majority of the altcoins. Once again, Bitcoin proved its worth over Gold [in spite of the latter facing much less volatility], which indicates that Peter Schiff along with the rest of the “Gold Barons” is wrong.

However, BTC has a long way to go, as the market capitalization is nowhere near that of the precious metal. Although, the latter has generally reacted to events transpiring around the world in a gradual manner.

The lawmakers hailing from the United States had conducted an interactive session with authorities in Switzerland. It seems that the Trump administration is still unsure with regards to the LIBRA project of Facebook.

Maxine Waters, a representative of America, expressed her dismay at a “privately controlled” global currency. Well, the Dollar is manipulated by powerful entities associated with numerous financial bodies in the U.S.A. So her point on the centralization of LIBRA is moot. Because banks have been responsible for economic dilemmas for ages.

While the mainstream community of crypto-enthusiasts is yet to be optimistic about the latest venture of Facebook, David Marcus of Calibra [previously PayPal] has said that LIBRA intends to abide by all regulations in place. Let’s hope that we don’t come across a “Cambridge Analytica data scandal” type of situation this time.

Bitcoin is the top-ranked digital currency in the market. The eleven-year-old king coin rose at a rate of 2.82% in the course of the past 24-hours. The trading volume recorded is $17.132 billion, while the supply has 17,897,337 BTC coins in play. At present, the total market cap of Bitcoin is $186.279 billion. As of this moment, BTC is priced at $10,408.22

BY ADITYA CHATTERJEE ON AUGUST 26, 2019

David – http://markethive.com/david-ogden

Bitcoin (BTC) Price Testing Last Line Of Defense With Positive Bias

Bitcoin price is showing positive signs and settled above $10,000 against the US Dollar.

The price is now trading near the key $10,400 resistance area, which is preventing gains.

Yesterday’s highlighted important bearish trend line is acting as a solid resistance near $10,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The price is likely setting up for the next key break either above $10,500 or below $10,250.

Bitcoin price is trading with a positive bias above $10,200 against the US Dollar. However, BTC must surge above $10,400 and $10,500 to move into an uptrend.
 

Bitcoin Price Analysis

In the past few sessions, there was a steady recovery in BTC above $10,000 against the US Dollar. The price even traded above the $10,200 and $10,250 resistance levels. Moreover, there was a close above the $10,200 level and the 100 hourly simple moving average. As a result, there was a decent recovery in many altcoins as well, including Ethereum, ripple, ETC, bitcoin cash and EOS.

Bitcoin price gained pace above the 23.6% Fib retracement level of the key decline from the $10,975 swing high to $9,757 low. The recent wave was such that the price even spiked above the $10,400 level. Moreover, there was a break above the 50% Fib retracement level of the key decline from the $10,975 swing high to $9,757 low. However, the bulls faced a strong resistance just below the $10,500 level.

Additionally, yesterday’s highlighted important bearish trend line is acting as a solid resistance near $10,420 on the hourly chart of the BTC/USD pair. The pair is now consolidating below the trend line and the $10,500 resistance. Moreover, the 61.8% Fib retracement level of the key decline from the $10,975 swing high to $9,757 low is at $10,510.

Therefore, the price could rally if it breaks the trend line and the $10,500 resistance area. The next stop for the bulls could be near the $11,000 resistance area in the near term. On the other hand, an immediate key support is near the $10,250 level. If there is a downside break below the $10,250 support, the price could start a fresh decline in the coming sessions.
 

Bitcoin Price Analysis BTC Chart

Looking at the chart, bitcoin price is clearly setting up for the next key break either above $10,500 or below $10,250. There are high chances of a fresh bearish wave as long as the price is below the $10,500 pivot area.
 

Technical indicators:
 

Hourly MACD – The MACD is slowly losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently above the 50 level.

Major Support Levels – $10,250 followed by $10,000.

Major Resistance Levels – $10,420, $10,500 and $10,680.

Aayush Jindal

1 min ago

David – http://markethive.com/david-ogden

China Plans to Introduce New Crypto to Rival Bitcoin, Say’s Analyst

An influential officer of the PBoC at the meeting of China finance 40 groups had declared China’s intention to introduce a sovereign crypto asset. The declaration of this proposed introduction is unexpected at this time due to the ongoing currency war and trade dispute with the U.S.

China’s Progressive Crypto Route

Mu Changchun, the deputy director in the payment and settlement division at the PBoC had declared during the meeting with bankers that the prototype for the unspecified project is ready to be adopted. This declaration was reported by the local news media of Shangai securities during the weekend. The deputy director further discussed the digital asset intricacies. He added that blockchain features are noticeable in its product but not developed around decentralized ledgers because the retailers and banks use high-bandwidth and speed in China. As it is, the use of a reserve model by the PBoC similar to Circles USDC or a digital fiat model is not certain.

As for the cryptocurrency, it is intended to function in two ways. The upper layer will be operated by PBoC and the lower level will be operated by the retail banks. Changchun had explained that the operational splitting into two segments is to make the project function positively in a complex and massive economy in China.

How this will function was not explained, however, the assumption is that the split structure will function similar to the present double segment structure like that of the present division among Central banks and banks. To further make clear, the PBoC releases the currency and manages high-level payments while the retail banks operate on the adoption and utilization of the cryptos.

As of now, the deputy director Changchun asserts that the crypto is best utilized for “smaller-unit retail high-frequency trade dealings”.

China Crypto May Pose a Challenge to Bitcoin

As a result of the introduction of Central bank digital currencies (CBDCs) coming into the space of international finance, discussions centered on the scenario mostly from analysts and economists are dominating the news in the crypto sphere.

A new york University Professor and economist knew for his negative bias towards Bitcoin recently declared in his publication late last year, titled Column for Project Syndicate that the introduction of CBDC’s to the digital sphere will “shut the avenue for Crypto-scammers”.

Probably, most digital payments systems may be changed by the “CBDCs”. Roubini stated by making clear that different to traditional retail banks and websites like Paypal, having high transaction fees, failed transactions and high resistance to free use, the Central banks offer a cost-effective and efficient approach at intermediating and lending money.

Roubini explained that giving access to any person to make payments using the central bank’s platforms, “CBDCs process will automate the structure, easing the requests for money, default banking accounts, and also a digital form of money services”.

In this scenario, the conclusion reached by the economist was declared as having CBDCs replace cryptocurrencies, with Bitcoin included, as offering an alternative to low-cost security and decentralized coins by the simplicity of central banking application.

David – http://markethive.com/david-ogden

EU Antitrust Regulators Scrutinise Facebook’s “Cryptocurrency” Project

Facebook’s Libra project has been questioned by European Union anti-trust regulators. They are concerned about the project, popularly referred to as a cryptocurrency, restricting competition.

Libra has been subject to immense scrutiny already from global policy and law makers. In fact, the company recently admitted that the regulatory pressure might force it to postpone or even cancel the project altogether.

Facebook’s “Cryptocurrency” Ambitions Draw Yet More Regulatory Attention

Almost as soon as the social networking giant Facebook announced its plans to move into the cryptocurrency space with Libra, the idea was met with hostility from global regulators.

Policy makers from France, the EU, the US, and elsewhere cited a hefty list of concerns about the cryptocurrency-like project. Even United States President Donald Trump weighed in on the subject, stating that the company would have to apply for licences if it wanted to offer banking services, just like any other financial institution does. He also stated that Libra would never pose a challenge to the might of the US dollar:

According to a report today in Bloomberg Law, the list of regulators with doubts about the firm’s cryptocurrency ambitions continues to grow. It states that antitrust regulators in the EU are concerned that the digital currency may stifle competition. The report cites a “document seen by Bloomberg” as evidence.

The document appears to be a questionnaire that has been sent to groups associated with Libra at this early stage of its development. Such a document is a standard part of enquiries made by the European Commission.

The questionnaire seeks to measure how the Libra cryptocurrency-like system may shutout rivals. The European Commission antitrust regulators believe that the integration of the digital currency with applications such as WhatsApp and Messenger could make it all but impossible for competing systems to find traction in the market.

The ever-growing list of regulatory concerns against Libra could well jeopardise the project’s proposed 2020 launch date. In fact, in a document submitted to the US Securities and Exchange Commission, the company admitted that the scrutiny might force the California-based social media company to discard the cryptocurrency-like project altogether.

Despite the fact that Libra is being touted as a cryptocurrency, most Bitcoin proponents do not see it as competition. Libra will not be priced by market forces like Bitcoin is. Rather, it will be backed by a basket of national currencies. It therefore does not represent the same robust monetary policy that has made BTC a favourite of economists from the Austrian school of thought.

Rick D.

David – http://markethive.com/david-ogden

Daily confluence detector shows med-strong resistance levels till $10,750

BTC/USD has had a bullish start to the day as the price has gone up to $10,365.

Price is supported by a strong support level at $10,070.

BTC/USD is on the verge of having three bullish days in a row. Unlike the rest of the crypto market, Bitcoin seems to be creeping along in a bullish trajectory, probably buoyed by the news of the Bakkt announcement. The hourly price chart shows that the price fell to $9,885, where it found support and went up to $10,470. That was when it met resistance and then dropped to $10,365.

BTC/USD daily confluence detector

The two resistance levels of note are at $10,550 and $10,670. $10,550 has the 4-hour previous high, 200-day simple moving average (SMA 200) and 1-day previous high. $10,670 has the 1-month Fibonacci 38.2% retracement level.

On the downside, there are two support levels at 10,275 and $10,070. $10,275 has the 1-week Fibonacci 38.2% retracement level and 4-hour previous low. The strongest support level is at $10,070, which has the 1-day Fibonacci 61.8% retracement level and 1-month Fibonacci 23.6% retracement level.

David – http://markethive.com/david-ogden