News Updates August 15, 2022
1. Bitcoin Breaches Overhead Resistance but Fails to Reclaim the $25,000 Support
The Bitcoin (BTC) exchange rate has remained stable above the $24,000 support as it struggles to recapture $25,000. After several attempts to maintain the bullish momentum, Bitcoin is holding above $24,000.
Buyers have been struggling to break through the $24,900 resistance since August 11. Nonetheless, Bitcoin reached the high of $25,205 today, but fell back below resistance. The largest cryptocurrency is struggling to regain the $25,000 support.
If the bulls break the current resistance and the bullish momentum is maintained above the $25,000 support, the market will resume its upward momentum. The BTC price will rally to the $28,000 high. Bullish momentum will extend to the $30,000 and $32,000 highs. Conversely, if the bitcoin price turns away from its recent high and drops below the 21-day line SMA, it will fall back to its previous low at $20,724.
*Bitcoin indicator reading*
Meanwhile, Bitcoin is at level 62 of the Relative Strength Index for period 14, indicating that Bitcoin is in an uptrend and could continue to rise. Nevertheless, the BTC price is below the 40% range of the daily stochastic. This indicates that the market is in a bearish momentum. The 21-day line SMA and the 50-day line SMA are up, indicating an uptrend.
*What is the next direction for BTC?*
Bitcoin is in an uptrend as buyers try to break the $24,000 high and maintain the upward momentum. In the meantime, the price of BTC is falling to the downside. The uptrend will continue if the price finds support above the moving average lines. However, the downtrend will continue if the price falls below the moving average lines.
2. Final week of the bear rally’ — 5 things to know in Bitcoin this week
Bitcoin’s highest weekly close since June fails to convince as volatility quickly enters with the start of the new week.
Bitcoin (BTC) enters a new week with a bang after sealing its highest weekly close since mid-June — can the good times continue?
After a volatile weekend, BTC/USD managed to restrict losses into the later portion of the weekend to produce a solid green candle on weekly timeframes.
In what could shape up to be the last “quiet” week of the summer, bulls have time on their hands in the absence of major macro market drivers involving the United States Federal Reserve.
Fundamentals remain strong on Bitcoin, which is due to an increase in its mining difficulty for the second time in a row in the coming days.
On derivatives markets, encouraging signs are also present, with higher price levels accompanied by bullish data over sentiment.
The question for hodlers now is thus how robust the rally is and whether it is just that: a bullish countermove within a broader bear market.
Cointelegraph presents five factors which may influence price this week and help decide on Bitcoin’s next steps.
*Bitcoin embraces volatility after multi-week high close*
At around $24,300, the Aug. 14 weekly close was the best in two months for BTC/USD.
The weekly chart shows a steady grind upwards continuing to take shape after the June lows, and last week’s candle totaled around $1,100 or 4.8%.
An impressive move by 2022, the gains sparked some volatility overnight into the first Wall Street trading day of the week, BTC/USD continuing to hit $25,200 on exchanges before reversing noticeably under the weekly close level.
3. Top 5 Crypto You Should Watch This Week – BTC, ETH, BNB, GMT
Top 5 Crypto You Should Watch This Week, with many crypto altcoins producing price gains of two or more digits.
The recovery has sparked the excitement and belief that the bottom could be in for many crypto assets with the hope of a bull run in a short time. Let us discuss the top 5 crypto assets you should watch this week.
*Bitcoin (BTC) Price Analysis As A Top 5 Crypto*
From the chart, the price of BTC has continued to show bullish strength after retesting the price of $25,200 and was rejected from that region.
BTC is currently trading at $24,170 at the point of writing this article. The price of BTC is in a rising wedge; a breakout above the wedge could see the price of BTC going to the region of $27,000 – $28,500.
A breakout below this rising wedge could see the price of BTC retesting the support region of $21,400.
*Price Analysis Of Ethereum (ETH) On The Daily (1D) Chart*
The price of Ethereum has outperformed BTC in the past few days after showing bullish strength to a region of $2,000.
ETH price was rejected from $2,000 with what seems to be a resistance for ETH price to trend higher.
The price of ETH is trading above the 50 Exponential Moving Average (EMA) at $1,886 at the point of writing.
If the ETH price maintains its bullish structure, we could see the price breaking $2,000 to a region of $2,500, but If ETH gets rejected, the price of $1,622 corresponds to the 50 EMA, which would be good support for the ETH price.
*Price Analysis Of Binance Coin (BNB) On The Daily (1D) Chart*
The price of BNB was rejected from its resistance of $327 and is currently trading at $316.
BNB has maintained its bullish structure despite the rejection. A break of about $327 could see the price of BNB retesting the region of $388.
If the price of BNB gets rejected, the price of $286 that corresponds to the 50 EMA will act as a support.
*Price Analysis Of Sand Box (SAND) On The Daily (1D) Chart*
The price of SAND has continued to struggle above $1.3 support which corresponds to the 50 EMA; a break below this region could see the price of SAND retesting $1.18.
If the price of SAND breaks above the resistance of $1.4, we could see the price trending higher to a region of $2.
STEPN (GMT) Price Analysis As A Top 5 Crypto
4. Report Shows Crypto Assets Record Steady Growth As Inflation Lowers
The United States’ newest release on its inflation rate for July has created a celebration reason for many, especially the crypto sector. According to the Department of Labor publication, the July customer price index (CPI) report dipped to 8.5%. This was against its last year’s value of 9.1%.
With the report’s release, many people have expressed their recommendations for the Biden Administration and their shock. Some confessed that they have expected to see a spike in inflation due to some of the prevailing factors at the moment. They mentioned that the ongoing Ukraine-Russia war and price increase in goods were expected to play a role.
US President Joe Biden has reacted to the great news of the CPI report. Commenting from the White House, he maintained that the news shows that the economy ran with zero percent inflation for July.
President Biden further mentioned that their approach to controlling inflation yields positive results. Hence, he encouraged Congress to pass the inflation Reduction Act. This will help to build an economy that would reward hard work.
In the past six months, the US reported a negative GDP value for the two quarters of the year. Inflation also rose within the period, as indicated by the high-priced economy.
The report pointed out the monthly energy cost reduction that hit 4.6%. The value contradicts that of 2021, which gave a climbing curve to be at 32.9%. On the part of food expenses, there is a continuous uptrend.
The report recorded an 11% increase for July and a 10.9% rise on a year-over-year basis. Pundits reported that this value stands as the highest surge since May 1979.
Gasoline prices dipped by 7.7% monthly to give drivers a little aid. However, it remained higher than the value for 2021 by 44%.
*Crypto Market Followed An Uptrend*
In a new development, the crypto market is making positive progress in price and value. However, the crypto space has been in shamble due to the impact of the crypto winter and other combining factors.
In addition, the geopolitical climate and macro influences had been quite unfavorable. As a result, bitcoin and most major crypto assets experienced drastic price drops over the first half of 2022.
While expecting the CPI July report, many cryptocurrencies dropped on August 9. On its part, BTC plummeted by 4% to trade at $23,100. This sudden downward move was after it hit the $24,000 level as of Monday. For Ethereum, the drop went below 5%.
But the market prices are making a bounce with most assets moving uptrend. For example, while Bitcoin has climbed above $24,200, Ethereum is increasing slightly beneath $1,900 at the time of writing.
5. IN HONG KONG, BITCOIN IS THE LAST CHANCE FOR FREEDOM
As tightening authoritarianism from China strips Hong Kong of financial freedom, Bitcoin offers its people a chance at forging their own paths.
This is an opinion editorial by Margarita Groisman, a technology engineer invested in the power of Bitcoin to help people around the world.
Many remember the intensity and incredible spirit of the people of Hong Kong during the 2019 protests that went viral all over our screens. Thousands of everyday citizens took to the streets to protest Chinese use of excessive force and an aggressive legislative takeover that went against Hong Kong’s Basic Law. Beginning in March 2019 with a sit-in at government headquarters following an amendment to the extradition policy to mainland China, the demonstrations went on and on with mounting grievances.
Hong Kong, once a beacon of free economic activity, a center of trade and commerce, and a democratic and free state with a level of sovereign control, would be rapidly taken over by mainland China.
The outbreak of COVID-19 largely ended the protests, and the west turned away from the plight of the people of Hong Kong. A 2020 document out of Beijing declared that “comprehensive jurisdiction” would be achieved by the Chinese Communist Party (CCP) over Hong Kong, with people’s observance of COVID-19 restrictions giving China the ability to quickly sweep away opposition using force and without the interference of foreign powers.
Freedoms that those in the West take for granted, such as the right to protest and to free speech, no longer exist in Hong Kong with all forms of political opposition now silenced. The new National Security Law, designed to prevent “secession, foreign interference, terrorism and subversion against the central government” was passed in May 2020, bypassing the local legislative process and allowing China to take unprecedented control of Hong Kong.
Hong Kong’s once-enshrined Basic Law, granting it a “capitalist system and way of life” and granting “a high degree of autonomy,” including executive, legislative and independent judicial powers for 50 years, has been broken and ended by the will of the CCP.
Since then, we’ve seen a mass exodus of the people of Hong Kong as basic freedoms that the residents used to enjoy have virtually all been taken away. We’ve also seen a weakening of the economic strength of Hong Kong.
6. Crypto Industry Eyes SEC’s ‘Regulation by Enforcement’ Ramp Up
* Recent regulator actions are the culmination of efforts to bolster authority in the space made in the past year.
* Defendants in current case against alleged crypto scheme Forsage could challenge SEC’s jurisdiction, lawyers say.
Regulation by enforcement will continue in the absence of concrete crypto legal frameworks, according to industry executives and lawyers, as regulators are seeking to spotlight recent investor protection issues in the space.
Crypto-related cases and enforcement actions have picked up in recent weeks. The SEC most recently charged 11 people for allegedly creating and promoting a fraudulent crypto pyramid and Ponzi scheme, called Forsage, that raised more than $300 million from retail investors.
The regulator, along with the US Department of Justice (DOJ) also charged a former Coinbase employee, along with his brother and his friend, with insider trading last month. The SEC alleges in the complaint that nine different crypto tokens are securities.
On June 30, the DOJ charged six people with crypto fraud offenses in cases involving more than $100 million in losses. One was the largest known NFT scheme charged to date, involving an alleged so-called “rug pull” scheme involving the Baller Ape Club NFTs.
Much of the latest enforcement activity has been in the works for a while, according to Ari Redbord, head of government affairs at TRM Labs.
“These aren’t necessarily new frauds or scams; they’re frauds or scams that are now finding their way through the enforcement system or the criminal justice system,” he said. “It feels very much like a lot is going on right now, but some of it is the culmination of what started six months or a year ago.”
*Regulation by enforcement on a backdrop of regulatory uncertainty*
The SEC renamed its cyber team in the agency’s Division of Enforcement to the Crypto Assets and Cyber Unit, in May. The regulator revealed at the time that it would add 20 people to the team responsible for protecting investors in crypto markets and cyber-related threats, bringing its headcount to 50.
“The SEC has already turned up the heat, and I would expect that heat to continue and possibly get even hotter as the SEC attempts to expand its authority over an industry already inundated with regulatory uncertainty,” said Adam Pollet, a partner in Eversheds Sutherland’s securities enforcement and litigation practices.
Patrick Daugherty, a former SEC lawyer and partner at Foley & Lardner, added: “Fraud cases are easy cases. I expect the SEC to bring easy cases to chalk up easy wins.”
The Department of Justice in February named a director for its National Cryptocurrency Enforcement Team — a new unit focused on digital asset seizure and blockchain-based lawbreaking.
Redbord, who, before TRM Labs, was a US prosecutor and an official at both the DOJ and the US Department of the Treasury, said that recent events such as the collapse of Terra’s algorithmic stablecoin UST and the LUNA token have spurred regulators to want to shine a light on consumer protection issues and stability risk in the space.
“It’s difficult to get anything through Congress, so you’re not necessarily going to get any clear legal framework any time soon,” he added.
The SEC can ask the court to enter a temporary restraining order or an asset freeze against operators of an alleged fraudulent scheme to prevent further dissipation of investor funds while the litigation proceeds, he added. But it does not appear the regulator has done so, Pollet said, noting that it could be because the relevant assets reside outside the US.
7. Crypto needs ‘enabling environment,’ Philippines central bank says
The Philippine central bank sees the potential of crypto to improve domestic and cross-border payments, but the authority is still negative to crypto as a legal tender.
Amid the rising cryptocurrency adoption in the Philippines, the country’s central bank is seeking measures to better protect investors through elevating local crypto awareness.
The Philippine central bank, Bangko Sentral ng Pilipinas (BSP), wants to promote crypto education as the authority sees a lot of benefits associated with crypto and blockchain, a BSP representative said in an interview with Cointelegraph.
“The BSP’s focus is on virtual assets’ capacity to improve the delivery of financial services, particularly payments and remittances services, as it has potential to provide faster and economical transfer of funds, both for domestic and international setting,” the BSP stated.
According to the BSP, crypto adoption in the Philippines has increased over the past few years due to the COVID-19 pandemic. As such, Bitcoin (BTC) trading volumes in the Philippines were hitting new highs on some peer-to-peer crypto exchanges in July 2021.
“During the pandemic, we have seen the willingness of consumers to explore the virtual realm, particularly online platforms that promise to offer income-generating opportunities or play-to-earn applications,” the BSP spokesperson said.
In response to the growing adoption, the Philippine central bank does not plan to adopt any significant limits on crypto investments or trading at this point. Instead, the BSP is looking to implement a regulatory approach aimed at providing an “enabling environment” through “risk-based and proportionate regulations,” the central bank’s representative said, adding:
Despite targeting an “enabling environment” for crypto, the BSP holds a highly negative stance on using crypto as a payment method. “Virtual assets, particularly cryptocurrencies, whose values are derived based on the agreement of the community of users, are not intrinsically designed to serve as legal tender,” the bank noted.
According to the BSP, cryptocurrencies cannot serve as a means of payment due to risks like high volatility and a high potential for unlawful use or theft due to increased anonymity and “weak cyber and digital identity security protocols.” Among other risks, the bank mentioned crypto transaction irreversibility, which means that no central authority would ever be able to cancel a Bitcoin transaction or restore such funds.
The BSP also pointed out that the regulator considers cryptocurrencies virtual assets rather than a currency. “Since the price of most virtual assets is driven by speculation, virtual assets expose users to price volatility and risk of losses,” the BSP noted. To address this, the central bank issued guidelines for virtual asset service providers as part of Circular No. 1108 in January 2021.
*The Philippines halts virtual asset provider license applications*
The BSP still sees great opportunities in utilizing blockchain technology to enhance the security and efficiency of financial services in the Philippines. The central bank is currently exploring the issuance of a central bank digital currency (CBDC).
The BSP is planning to undertake Project CBDCPh, a pilot project that will enable inter-institutional fund transfers utilizing a wholesale CBDC platform. According to the bank, a retail CBDC is not highly relevant for the country in the near term.
8. The UK’s Offshore Tax Havens Are Attracting Investors Amid the “Crypto Winter”
As cryptocurrency prices have plummeted this year, crypto investors have become more selective about where they invest their money. Therefore, the British Channel Islands, Jersey, and Guernsey have become satisfying choices, which began competing for the booming asset class before crypto entered the mainstream.
Jersey and Guernsey are attracting crypto, blockchain, and other investment firms and offering crypto investors incentives to move their money from territories like Bermuda and the Cayman Islands since they have beneficial tax laws and neither of them has capital gains or inheritance tax.
Jersey has attracted several companies, including Coinshares, which manages around $3 billion worth of assets. The company used Jersey to establish its physical bitcoin exchange trading product in January 2021.
