News updates March 15, 2022
1. EU Lawmakers Vote Against Bitcoin Ban:
The Committee on Economic and Monetary Affairs (ECON), a committee of the European Parliament, has rejected a "de facto" Bitcoin ban.
Members of the European Parliament (MEPs) voted 32-24 against passing the initiative, according to a tweet posted by Patrick Hansen, head of growth and strategy at DeFi start-up Unstoppable.
A majority of MEPs representing the European People's Party (EPP), the European Conservatives and Reformists (ERC), Renew Europe (Renew) and Identity and Democracy (ID) have rejected the crippling provision. The Greens, Socialists and Democrats (S&D), and the Left in the European Parliament (GUE/NGL) supported the ban as expected.
The renewed possibility of a Bitcoin ban provoked backlash within the industry once again. David Marcus, former Meta blockchain lead, predicted that such a move would have a "catastrophic" impact
The MEPs approved an alternative amendment proposed by rapporteur Stefan Berger that does not restrict Bitcoin mining.
Hansen has commented that the EU's crypto community has become a "strong force" in politics.
Not out of the woods:
The MiCA framework will now become the subject of trilogue negotiations. Once a consensus is reached, the law will come into effect.
As noted by Hansen, the anti-Bitcoin coalition of MEPs could still veto a fast-track procedure of passing the crypto bill, which would require at least one-tenth of the votes. The group could win time by delaying the passage of the MiCA by several months.
2. Bitcoin Attempts Fresh Increase, Why Upsides Remain Capped:
Bitcoin attempted a fresh increase above $39,500 against the US Dollar. BTC is still facing a strong resistance near $39,800 and $40,000.
* Bitcoin spiked above $39,500, but it failed to clear the $40,000 resistance zone.
* The price is trading near $39,000 and the 100 hourly simple moving average.
* There was a break above a key bearish trend line with resistance near $38,750 on the hourly chart of the BTC/USD pair (data feed from Kraken).
* The pair must clear the $39,800 and $40,000 resistance levels to start a fresh increase.
Bitcoin Price Faces Hurdle:
Bitcoin price started a recovery wave above the $38,200 resistance level. BTC even spiked above the $38,500 resistance level, but it faced a strong resistance.
During the recovery, there was a break above a key bearish trend line with resistance near $38,750 on the hourly chart of the BTC/USD pair. The pair climbed above the $39,800 level and the 100 hourly simple moving average. However, it faced a strong resistance just below the $40,000 level.
A high was formed near $39,899 and the price corrected gains. There was a move below the $39,500 level. Bitcoin declined below the 23.6% Fib retracement level of the upward move from the $37,593 swing low to $39,899 high.
It is now trading near $39,000 and the 100 hourly simple moving average. An immediate resistance on the upside is near the $39,550 zone. The next major resistance could be near the recent high or $39,900. The main breakout resistance is still near the $40,000 zone.
A close above the $40,000 resistance zone could open the doors for a steady increase. In the stated case, the price could rise towards the $42,000 resistance zone.
Fresh Decline in BTC?
If bitcoin fails to clear the $39,550 resistance zone, it could continue to move down. An immediate support on the downside is near the $39,000 zone.
The next major support is seen near the $38,750 level. It is near the 50% Fib retracement level of the upward move from the $37,593 swing low to $39,899 high. The main support sits near the $38,500 level, below which there is a risk of a sharp decline.
3. Bitcoin is in a Range Bound Move, Fighting Resistance at $39,000;
Bitcoin (BTC) price is in a downward correction as the largest cryptocurrency struggles below the moving averages.
Bitcoin (BTC) price long term forecast: bullish;
The price of BTC has been struggling below the moving averages. A break above the moving averages will push Bitcoin higher and reach the high at $42,000. The bullish momentum will push Bitcoin to regain the overhead resistance at $45,000. However, if Bitcoin price fails the moving averages, the market will fall to the low of $37,000. However, if Bitcoin loses the support at $37,000, BTC/USD will continue to fall to the lower region of $36,000 or $34,000. Meanwhile, Bitcoin has reached a high of $39,018 as of press time.
Bitcoin (BTC) indicator reading ;
Bitcoin is at level 47 of the Relative Strength Index for period 14, and the BTC price has fallen below the center line 50. The largest cryptocurrency risks further decline if it meets resistance at the moving averages. Bitcoin is above the 80% range of the daily stochastic. This means that the market is approaching the overbought zone. This is likely to affect the current upward movement of BTC prices. Sellers will show up in the overbought region and push prices down.
What is the next direction for BTC/USD?
BTC/USD is in a fluctuation range between $37,050 and $40,200 price levels. Since March 10, the BTC price has been forced to trade in a narrow range as buyers face strong resistance at the recent high. The price action is also characterized by doji candlesticks, which consist of small indecisive bodies. The doji candlesticks indicate that buyers and sellers are undecided about the direction of the market.
4. FTX crypto exchange wins license in Dubai to open local headquarters;
Sam Bankman-Fried's FTX crypto exchange will offer crypto derivatives products to institutional investors in Dubai with the new license.
Major global cryptocurrency exchange FTX is expanding operations in the United Arab Emirates by receiving a virtual asset license in Dubai.
The license is apparently granted under a new cryptocurrency law adopted last week in Dubai, with Dubai Virtual Asset Regulatory Authority (VARA) becoming a major crypto regulator in the Emirate’s special development and free zones.
According to FTX founder and CEO Sam Bankman-Fried, FTX has received the “first and so far only” digital exchange license from Dubai.
Binance has also obtained a crypto license in Dubai under the same program, according to a report by Bloomberg. The world's largest crypto exchange by trading volumes was reportedly working to receive an operational license in Dubai last week.
As part of its push in Dubai, FTX plans to establish a regional headquarters in the city and offer crypto derivatives products with centralized counterparty clearing to institutional investors, Bankman-Fried said.
FTX’s European and Middle Eastern division FTX Europe is among anchors in the Dubai World Trade Centre, which became a comprehensive zone and regulator of cryptocurrencies, products and operators in December 2021. As previously reported, Binance was among the first crypto exchanges to join a new crypto hub established by the Dubai World Trade Centre Authority last year.
The certainty and credibility that Dubai assures in its adherence to these commitments allows FTX to safely pursue its overall strategy of scaling towards becoming the first virtual-asset service provider to enter global markets in a fully regulated manner,” FTX Europe head Patrick Gruhn said.
Binance gets the green light from Canada and Bahrain ;
Landing licenses to operate in each region will certainly help Binance achieve its goals in that respect. Its most recent notable acquisition was news media publisher Forbes last month for the princely sum of $200 million.
The CBB’s move also arguably puts the country ahead of Dubai as the region’s crypto hub. Bahrain’s financial crypto regulations are certainly ahead of those in Dubai, which does not yet allow crypto exchanges to offer services to its residents.
However, CEO of Bahrain-based crypto exchange CoinMENA, Talal Tabbaa, told CNN in February that although the central bank has more advanced crypto regulations now, "If banking was sorted, then Dubai could be the number one destination for crypto."
The banking issue in Dubai may be sorted this year as United Arab Emirates (UAE) Prime Minister Sheikh Mohammed bin Rashid Al Maktoum created a legal framework for crypto in Dubai. Cointelegraph reported that the Prime Minister said the framework would protect investors and design “much-warranted international standards” for crypto industry governance.
5. Argentinians Criticize IMF Requirement to Slow Down Crypto Adoption in the Country
Argentinian citizens involved in the cryptocurrency industry are criticizing a perceived anti-crypto requirement that the recent deal made with the IMF has introduced. The deal, which restructures and gives more facilities to the country to pay the $45 billion owed to the fund, also hints at a series of measures directed at stifling the growth that the crypto industry has experienced in the country.
6. Central Bank of Bahrain Grants Binance The First License for a Global Crypto-Asset Provider
The Central Bank of Bahrain has granted Binance the first license for a global crypto-asset provider in The Cooperation Council for the Arab States of the Gulf (GCC). The latest development was brought to light in a tweet made by the Binance founder, Changpeng Zhao.
7. Japan Asks Crypto Exchanges to Cancel Russian Sanction Related Transactions
Following concerns from the Group of Seven (G7) nations, Japan has requested crypto exchanges to cancel transactions of crypto assets that are subject to asset-freeze sanctions against Russia and Belarus, Reuters reported citing national officials.
8. Russians Look To Dubai To Unload Billions In Crypto
Crypto firms in the Dubai United Arab Emirates (UAE) are getting several requests from Russians to liquidate billions of dollars worth of digital assets. This is coming when Russians are looking to safeguard their fortunes following the recent sanctions.
Reports have emerged that some clients are investing in real estate using cryptocurrency, while others are turning their digital assets into hard currency and stashing it elsewhere.
9. Ukrainian government launches crypto donation website with FTX, Kuna and Everstake
Crypto exchanges FTX and Kuna and staking platform Everstake have partnered with Ukrainian government officials to launch a donation website for users wishing to send crypto to help the country and its people.
10. Visa Offers Crypto Development Program for College Students
Payment giant Visa is offering an 18-month full-time crypto development program for undergraduates in the United States, which will focus on building a "fully fluent cryptocurrency team now and for the future".
