News updates May 30, 2022
1. Bitcoin (BTC) At $29,000, How Long Will The Consolidation Continue?
Bitcoin remained consolidated over the last 24 hours, altcoins however, have dipped on their charts. Over the last week, the king-coin continued to register lateral price movements on the charts. Ever since November, 2021, price of Bitcoin has consistently moved on the downside.
On the longer time frame, Bitcoin has continued to show signs of upcoming bearishness. On a comparatively, shorter time frame the king-coin might be hinting at a price reversal.
Over the last 24 hours BTC made no gains. In the last week, it lost about 2% as the coin was mostly consolidating. Currently, BTC is sandwiched between $28,000 and $29,000 as those two levels have been acting as the coin’s crucial demand zone.
The buyers seem to have clearly given up on the initiative to lead the price action and with continued strength from sellers, BTC might be eyeing the $20,000 price level.
*Bitcoin Price Analysis: One Day Chart*
BTC was priced at $29,100 at the time of writing. The coin had formed a descending channel ever since November 2021 highlighting an extended bearish phase. The coin has touched $69,000 in the month of November, which is considered the all-time high for the coin.
Currently price of BTC is laterally trading between $29,000 and $28,000. A fall below which can push price of the coin to as low as $19,000. Overhead resistance for the coin stood at $30,000 and for bearish thesis to be invalidated BTC needs to trade above $31,000.
*Technical Analysis*
Bitcoin’s short term time frame looked optimistic pointing towards a price reversal on the charts. The coin formed a descending wedge pattern on the chart (yellow).
A descending wedge pattern is related to a trend reversal and that can be considered bullish for BTC. Usually after a period of consolidation, explosive price actions are often due.
On the Relative Strength Index, the indicator climbed and reached the 50-mark which meant buyers were returning in the market. This signified positiveness in the market.
Price of BTC was still under the 20-SMA which meant that sellers were still driving the price momentum. An increase in buying strength can push BTC above the 20-SMA line.
2. Bitcoin Clears $30K, Why This Could Mean Trend Change
Bitcoin started a fresh increase and surpassed $30,000 against the US Dollar. BTC is showing positive signs and might rally further if it clears $30,600.
* Bitcoin is gaining pace above the $29,500 and $30,000 resistance levels.
* The price is now trading above the $29,500 level and the 100 hourly simple moving average.
* There was a break above a major bearish trend line with resistance near $29,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
* The pair could rise further if it clears the $30,600 resistance zone.
*Bitcoin Price Gains Pace*
Bitcoin price formed a fresh base above the key $28,500 support zone. It remained well bid and started a fresh increase above the $29,200 resistance zone.
The price cleared the 50% Fib retracement level of the downward move from the $30,188 swing high to $27,505 low. Besides, there was a break above a major bearish trend line with resistance near $29,200 on the hourly chart of the BTC/USD pair.
The pair is now trading above the $29,500 level and the 100 hourly simple moving average. Bitcoin is also trading above the 76.4% Fib retracement level of the downward move from the $30,188 swing high to $27,505 low.
An immediate resistance on the upside is near the $30,250 level. The next major resistance is near the $30,600 level. A clear move above the $30,600 resistance level might call for a trend change. In the stated case, the price could even clear the $31,200 resistance. The next major resistance sits near the $32,500 level.
*Fresh Decline in BTC?*
If bitcoin fails to clear the $30,600 resistance zone, it could start a downside correction. An immediate support on the downside is near the $30,000 level.
The first major support is near the $29,600 level. The main support is now forming near the $29,300 level and the 100 hourly simple moving average. A downside break below the $29,200 support might send the price further lower. In the stated case, the price may perhaps revisit the $28,500 support zone in the near term.
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.
Major Support Levels – $29,500, followed by $28,500.
Major Resistance Levels – $30,250, $30,600 and $32,500.
3. Belarus Has Seized Millions of Dollars in Crypto, Chief Investigator Claims
Authorities in Belarus have mastered the seizure of cryptocurrencies, the head of the country’s Investigative Committee revealed in a recent interview. The high-ranking law enforcement official claims the state has already confiscated crypto assets worth millions of dollars.
*Companies Allegedly Help Belarus Government With Crypto Seizure*
Belarus had to deal with the challenge of how to seize cryptocurrencies when they were first used in drug trade and later economic crimes, Dmitry Gora, who heads the nation’s Investigative Committee, told the state-run ONT channel. He added that law enforcement agencies had to find a way to confiscate such digital assets and have already seized crypto worth hundreds of millions of Belarusian rubles (millions of U.S. dollars).
The former Soviet republic, a close ally of Russia, legalized various crypto activities with a presidential decree which went into force in May 2018. The document introduced tax breaks and other incentives for crypto businesses operating as residents of the Hi-Tech Park (HTP) in Minsk within efforts to develop the country’s digital economy.
In March 2021, President Alexander Lukashenko hinted at a possible tightening of the country’s crypto regulations, referring to China’s example. However, HTP officials later insisted Belarusian authorities had no intention to adopt stricter rules for the industry. What’s more, the finance ministry proposed amendments to allow investment funds to acquire digital assets.
In April of this year, the Ministry of Justice adopted a legal procedure allowing the seizure of crypto funds as part of enforcement proceedings. It implements another decree by Lukashenko from February who ordered the establishment of a special register for crypto wallets used for illicit purposes.
Dmitry Gora went on to quote his “advanced subordinates,” saying that cryptocurrency was just “digital trash.” “Based on this, I set the task: our state needs money to compensate for the damage caused. Let’s think about how to make money out of trash. I will not go into details, but we have learned how to do it… There are mechanisms that allow us to deal with these issues, and quite successfully,” he elaborated.
The law enforcement executive pointed out that both government agencies and commercial organizations are involved in the process. As a result, “the amounts that are already in the form of good, normal money are on the accounts of the Investigative Committee,” Gora stated.
4. Provision Allowing Cryptocurrency Payments in Foreign Trade Added to Russian Bill
A proposal to permit companies to use cryptocurrency in cross-border settlements has made its way to a draft law designed to regulate Russia’s crypto space this year. According to a press report, the finance ministry has introduced a number of revisions to the legislation it has been working on in the past few months.
5. Recession or Prolonged Inflation: The Fed Must Decide Between Two Policy Mistakes, Says Economist
Economist Mohamed El-Erian discussed where the U.S. economy is headed and the Federal Reserve’s plan to bring inflation under control in an interview with Bloomberg Friday.
Allianz Chief Economic Advisor Mohamed El-Erian says the Federal Reserve will have to “decide between two policy mistakes.” One risks triggering a recession and the other could prolong inflation well into 2023. “I think the time has passed for a soft landing,” the economist stressed.
6. Dubai-Based Startup to Raise $1.2M NFT Fund to Clean Up Ocean Plastics Globally
Oceans & Us announced on Sunday that it plans to raise $1.2 million in funding to clean up oceans worldwide. The Dubai based non-profit organization wants to raise funds by selling 10,000 generative non-fungible tokens (NFTs) and launching a new cryptocurrency.
The company seeks to partner with 100 brands across the UAE and the Middle East with a sustainable product or solution. Whoever buys or owns the NFT would have discounts or benefits with these firms.
7. Nigerian Presidential Hopeful Says He Supports Digital Currencies but Wants the Industry Regulated
Nigerian presidential hopeful, Bukola Saraki, recently said he supports the digital currency industry which he claimed has created opportunities for the country’s youth. However, he insisted that there is a need for the enactment of laws that guide players in this space.
