News Updates July 07, 2022
1. Bitcoin Pushes on the Upsides but Struggles below $21,000
Bitcoin (BTC) price is in a downward correction as it struggles to break the 21-day line SMA.
*Bitcoin price long-term forecast: bearish*
A break above the 21-day line SMA will push the largest cryptocurrency asset into the $22,000 and $23,300 resistance area. Bitcoin will recover above the 50-day line SMA and resume its upward momentum once the resistance zones are overcome.
The cryptocurrency will rise to the high of $32,000. On the other hand, if bitcoin turns away from the 21-day line SMA, BTC/USD will decline and regain the previous low at $17,605. In the meantime, the BTC price is trading at $20,329 as of press time. The price action is characterized by small indecisive candles called doji. Buyers and sellers are indecisive as Bitcoin fluctuates above the psychological price level of $20,000.
*Bitcoin indicator display*
Bitcoin is at level 40 of the Relative Strength Index for the period 14. The largest cryptocurrency asset is in a downtrend and could fall. The 21-day line SMA is the resistance line for the price bars. The 21-day line SMA and the 50-day line SMA are downtrending and indicate a downtrend. Bitcoin is above the 40% area of the daily stochastic. The market is in a bullish momentum, but it is stuck below the moving average lines.
*What is the next direction for BTC/USD?*
Bitcoin is trading just above the $20,000 support. The 21-day line SMA has slowed the bulls' upward movement. The bulls and the bears are still fighting to take control of the prices. However, market conditions favor the bears as Bitcoin is trading in the downtrend zone.
2. Bitcoin (BTC) Makes Fifth Attempt at Breaking out From Short-Term Pattern
Bitcoin (BTC) is at the neckline of a short-term inverse head and shoulders pattern, a breakout above which could greatly accelerate the rate of increase.
BTC has been falling underneath a descending resistance line since April 5. After being rejected on June 7, the price continued decreasing until June 18 at a low of $17,622.
The price has been increasing since, and created a higher low on July 3. Similarly, the RSI has created a higher low and moved outside of its oversold region.
However, neither the RSI nor the price have broken out from their respective descending resistance lines. The resistance line is currently at $22,000
*Short-term BTC pattern*
The six-hour chart shows that the price could be at the neckline of an inverse head and shoulders pattern. This is considered a bullish pattern that usually leads to bullish trend reversal.
Currently, BTC has reached the neckline of this pattern. A movement that travels the entire length of the inverse head and shoulders would take the price to $25,000 (black arrow). Therefore, it would cause a breakout from the long-term descending resistance line. The most likely wave count does suggest that a bottom has been reached.
The six-hour RSI is also bullish. It previously generated bullish divergence (green line), and its trendline is still intact. Additionally, the indicator has moved above 50 in what is considered a sign of a bullish trend.
*Potential Breakout*
Finally, the two-hour chart shows that BTC has broken out from a descending resistance line and made three unsuccessful attempts at moving above the $20,600 resistance area.
Since resistances get weaker each time they are touched, an eventual breakout from this area is expected. This is also in line with the readings from the six-hour chart.
Furthermore, the RSI has found support above 50, indicating that the short-term trend is bullish.
3. Hive Blockchain reports 278.5 BTC mined in June.
Crypto mining firm Hive Blockchain produced 278.5 BTC and 2,542 ETH in June.
The company currently holds 3,239 bitcoin and 7,667 ether, according to a statement on Thursday.
Hive increased its bitcoin mining hash rate from 2.17 exahash per second (EH/s) to 2.24 EH/s. Ethereum mining capacity went from 6.26 (TH/s) at the beginning of the month to 6.0 TH/s, as some miners were taken offline temporarily for layout optimization due to higher summer temperatures, per the statement.
Hive CEO Frank Holmes said that has been able to manage the market volatility recently, as it has weathered "crypto winters" before. Per Holmes, the company has strived to "maintain a strong balance sheet of Bitcoin and Ethereum which is completely unlevered."
The CEO also said that the business remains cash flow positive and has no "significant debt," aside from a long-term real estate mortgage from Canadian bank with less than 4% interest.
4. Pressure on SEC Chair Rises as Even WSJ Accuses Gensler of ‘Holding Investors Hostage’ with Bitcoin ETF Stance.
The US Securities and Exchange Commission (SEC) Chairman Gary Gensler is “taking investors hostage” with his insistence to deny spot Bitcoin (BTC) exchange-traded products (ETPs) and exchange-traded funds (ETFs) to launch in the US, the influential Wall Street Journal said in its editorial piece.
Wall Street Journal’s Editorial Board writes that they are “agnostic on crypto, including bitcoin,” but that investors still should be allowed to “invest at their own risk.”
“Crypto investors have taken big losses recently, but the market is evolving and financial firms want to serve investors who like the innovation,” the Editorial Board wrote.
The piece further argued that the existence of spot Bitcoin ETPs and ETFs could reduce volatility and deepen liquidity in the Bitcoin market. This is likely because these funds avoid the potential for hacks and the loss of private keys, which would help bring in more institutional investors.
It added that concerns raised by the SEC that the BTC market is vulnerable to manipulation are likely exaggerated. “[…] the USD 390bn bitcoin market is the deepest and most mature of all cryptocurrencies. It would be hard for an investor to game,” the authors said.
“Crypto markets can resemble the Wild West. But this is no reason to reject spot bitcoin ETPs, which would be tightly regulated by the SEC. Mr. Gensler’s blockade is counter-productive if his aim is to protect investors,” the editorial piece concluded by saying.
5. Russian media watchdog unblocks crypto news site after money laundering claims
Roskomnadzor, the government agency that oversees Russia’s mass media, has allowed users to once again access a prominent Russian crypto news page.
Bits.media, a Russian crypto-related news site, was only recently blocked as a consequence of proceedings in a district court in which the company’s representatives were not even required to appear.
The outlet was able to convince Russia’s Federal Service for Supervision of Communications, Information Technology and Mass Media to remove it from its blacklist, thus becoming available again on the Russian Federations territory on July 5, although the site’s editors announced they would continue to fight against the ‘unfair’ court verdict.
Roskomnadzor, as the agency is known, restricted access to the Bits.media website last week for promoting ‘money laundering’ after adding an undefined number of pages to a list of internet sites distributing content deemed unlawful in the Russian Federation.
The decision to implement the measure was based on a verdict that was made by the Volzhsky District Court of the city of Saratov in a case that was first filed by the office of the local prosecutor in late March.
After evaluating the situation’s circumstances without the proprietors of the media organization present, the court decided to accept the prosecutor’s motion a little under a month later.
The URLs that caused the problems, some of which belonged to other websites, were hidden from public view. Bits.media discovered that one of them is the address of its crypto exchanger aggregator, and it published this information.
It was also necessary to remove that page before the media censor in Russia would enable access to the website to be restored by Russian internet service providers. The members of its team have come to the conclusion that the four more connections that were specified in the judgement made by the provincial court are the addresses of other aggregators or crypto exchangers.
Despite this, the administration of the crypto media plans to put an end to the issue since it is adamant that the address was banned in violation of the law. Bits.media was established by Ivan Tikhonov, who was quoted as saying that: “We consider the court’s decision illegal and will seek its annulment.”
Tikhonov brought to light the fact that the editorial board had made the decision to deactivate the aggregator page in order to keep the rest of the site up during the proceedings.
6. Prince of Serbia claims unnamed Arab nation on the verge of adopting Bitcoin
Speculation mounts over which Arab country will adopt Bitcoin. Given the proliferation of memes on the topic lately, one country stands out.
During his appearance on the Bitcoin Reserve Podcast, Prince Karadjordjevic said Middle Eastern countries under monarch rule are “very stable.”
In contrast, countries in the same region not under a monarchy — such as Iraq, Syria, and Yemen — are fraught with social, political, and economic problems.
Continuing with this thread, the Prince said Bitcoin and Sharia Law are harmonious because debt is frowned upon under Sharia Law. Proponents of Bitcoin argue that self-custody of spot BTC is the truest form of money, in that the funds cannot be inflated away or rehypothecated.
Islamic codes refer to a more nuanced debt model than Prince Karadjordjevic explained. Loans and debt are not outlawed as such. Instead, there is an emphasis on not profiting from loaning money and lending for goodwill, such as for humanitarian and welfare purposes.
However, there is debate among Muslims about whether cryptocurrencies are forbidden. For example, in November 2021, Indonesia’s National Religious Council said the speculative nature of digital currencies goes against fundamental Islamic law principles.
There has been no official communication from any of the countries listed above about Bitcoin adoption. But lately, the internet is awash with chatter and memes that the Saudi royal family is going big on Bitcoin.
7. U.S. Federal Panel Claims Cryptocurrencies Can Boost The Economy, Will It Result In Bullish Trend?
The talks to allow digital currencies to exist in U.S. economy are underway. The suggestion is to achieve this by linking cryptocurrencies to the U.S. dollar. This contemplation took place on Tuesday at a meeting held by the U.S. Fed.
At the meeting, a panel of speakers stated that the dollar status would gain more strength with crypto assets in the U.S. economy. Moreover, this will also give a boost to the digital currency industry.
*Strength Of Dollar Could Improve Through Cryptocurrencies*
The current state of cryptocurrencies is still posing some level of uneasiness in the mind of cryptocurrency traders. Many still doubt that the market will take a bullish turn sooner than later. Considering this, the panelists thought it wise to mention incorporating these digital currencies into the U.S. dollar.
They believe that this will improve the status of the dollar and the cryptocurrency community. The panel added that the rise would be possible as crypto traders continue to use these digital currencies, particularly the CBDCs. They stated that the dollar changes would be evident in its role in the international market.
According to the Fed Chair, Jerome H. Powell, there is a tendency for altcoins and stablecoins to increase in price. He made this statement last month. This reveals that the move to link cryptocurrencies to the U.S. dollar has been in the pipeline. He added that due to the fast growth of these digital assets, the Federal Reserve is now assessing the use of CBDCs.
The idea behind the assessment is to know whether or not a CBDC would stand the test of domestic payment efficiency and safety. In addition, according to the U.S. Fed’s white paper, a CBDC could contribute positively to maintaining the international status of the U.S. dollar.
*CBDCs As An Improvement To The U.S. Dollar*
Going further in the discussions between the panelists, specific questions were addressed. One of which was whether or not the roles of the dollar can be positively affected by crypto technology. They concluded that the technological aspect alone of these digital currencies could not improve the ecosystem of this globally recognized currency.
This response had a reason backing it up; the ecosystem of these cryptocurrencies revolves only around retail investors. Also, there were steps to migrate to institutional investors, but those became abortive due to the missing regulatory framework.
8. SEC Still Against Spot-based Bitcoin ETFs. Is There A Light At The End Of The Tunnel?
With the approvals of futures bitcoin ETFs, firms have taken it one step further and have applied with the Securities and Exchanges Commission (SEC) for spot-based bitcoin ETFs. However, unlike their futures and short counterparts, the spot ETFs have not found favor in the eyes of the regulatory watchdog. And as more spot-based bitcoin ETF applications are declined by the SEC, questions have arisen about whether the market will see one anytime soon.
Grayscale And Bitwise Applications Rejected
Over the last month, anticipation had built up regarding spot-based Bitcoin ETF filings by both Grayscale and Bitwise. Grayscale had filed its application last year, with the SEC postponing its decision multiple times, but the firm had remained steadfast in its resolve to try to get approval for a spot bitcoin ETF. The final decision had come last week and it was indeed negative as experts had forecasted.
Grayscale had received a rejection on its application but it was not the only one. Bitwise had also made a filing for a spot BTC ETF and the SEC had also put a stamp of rejection on it too. The latter had filed to convert its popular Grayscale Bitcoin Trust (GBTC) to a spot-based ETF. The fund which has $12.35 billion is the largest bitcoin trust and is looking to move to the next level.
9. Exodus of pro-crypto financial regulators in UK amid allegations of misconduct in PM's government
In his resignation letter, Economic Secretary to the Treasury John Glen said that “vital reforms" to the country’s financial services were ready to be presented to Parliament.
Many officials responsible for regulating the United Kingdom’s financial system have resigned following allegations Prime Minister Boris Johnson exercised “poor judgement” in appointing a member of the government.
In a letter to Johnson posted to Twitter on Wednesday, Economic Secretary to the Treasury John Glen said his decision to resign was prompted by “recent events concerning the handling of the appointment of the former deputy chief whip” as well as the Prime Minister’s “poor judgment” in addressing the incident. Glen added that “vital reforms" to the country’s financial services were ready to be presented to Parliament.
Glen’s resignation followed that of Rishi Sunak — chancellor of the Exchequer for the U.K. — who on Tuesday announced he would also be leaving Johnson’s government for similar reasons. Sunak said he would be stepping down amid “serious challenges” for the global economy, including the effects of the pandemic and war in Ukraine:
“The public rightly expect government to be conducted properly, competently and seriously. I recognise this may be my last ministerial job, but I believe these standards are worth fighting for and that is why I am resigning.”
Both Glen and Sunak will remain members of parliament for their respective regions of Salisbury and Richmond. During Glen’s time in the U.K. government, he promoted reforming the country’s tax system to "make it work more easily for crypto" and called out policies making it difficult for crypto firms to register with the Financial Conduct Authority.
“If crypto technologies are going to be a big part of the future, then we, the U.K., want to be in — and in on the ground floor,” said Glen at the Innovate Finance Global Summit in April.
In 2020, Sunak said the U.K government would prioritize financial technology including central bank digital currencies and stablecoins, aiming for the country to keep pace with innovation. He has been behind many subsequent proposed reforms promoting the adoption of cryptocurrencies and stablecoins.
10. Voyager Digital Faces Delisting From Toronto Stock Exchange Following Bankruptcy Filing
The exchange has suspended trading of the stock as it looks at whether the shares meet its listing requirements.
The shares of crypto broker Voyager Digital have been suspended from trading on the Toronto Stock Exchange while the exchange starts an expedited review about whether the stock continues to meet its listing requirements. The shares have also been halted on over-the-counter markets in the U.S.
The Investment Industry Regulatory Organization of Canada announced Wednesday that Voyager Digital's stock trading on TSX had been halted as of 8 a.m. ET. The Toronto Stock Exchange later announced it had begun an expedited delisting review. The shares are also halted in the U.S., where they trade over the counter under the ticker symbol VYGVF.
The company filed for Chapter 11 bankruptcy protection in the Southern District of New York late Tuesday, with estimates that it had more than 10,000 creditors and between $1 billion and $10 billion in assets with the same range for its liabilities.
The crypto broker's loan book is estimated to be nearly 60% composed of loans to crypto hedge fund Three Arrows Capital, which Voyager CEO Steven Ehrlich blamed for most of his company's woes.
