Kategorie: Bitcoin News

El Salvador became the first country to make Bitcoin a legal tender and is now building a Bitcoin City.

CEO of JAN3, Samson Mow, has revealed that it would take around ten years to finish building the Bitcoin City.

JAN3 entered an agreement with the El Salvador government to build a Bitcoin City. Mow said the construction is going as planned but will take at least a decade before it is completed.

The construction of the Bitcoin City is one of the key projects of Nayib Bukele, the president of El Salvador. President Bukele believes that Bitcoin City is an excellent innovation that will attract investors to reside and settle in the country. 

In an interview, Mow said 

“Bitcoin City is easier to contextualize as a special economic region first than as a place with buildings because that will come later.”

JAN3 is also set to handle the immigration platform for Bitcoin City for the El Salvador government. The immigration platform will be designed to facilitate easy citizenship applications for bitcoiners in the city. Mow said;

“You will have bitcoiners trying to immigrate or apply for citizenship, and they will be uploading documents and all that. It is very important that it be a very secure system and platform.”

In June 2021, El Salvador made history as the first country to pass a law to accept BTC as legal tender. The bill came into law in September last year despite some protests in the country against it. 

The El Salvador government received several warnings from global financial institutions like the World Bank and the International Monetary Fund (IMF) about the risks of adopting Bitcoin as a legal tender. 

Despite that, El Salvador launched its Chivo wallet to enable its citizens to buy and exchange cryptocurrencies. 

El Salvador bought today 80 #BTC at $19,000 each!#Bitcoin is the future!

Thank you for selling cheap 😉 pic.twitter.com/ZHwr0Ln1Ze

— Nayib Bukele (@nayibbukele) July 1, 2022

The El Salvador government has also been buying bitcoins. In July, President Bukele took advantage of the bear market and bought  80 bitcoin for $19,000, which amounts to $1.52 million.

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The cryptocurrency market has performed excellently over the past 24 hours, erasing some of the losses recorded over the weekend. 

The cryptocurrency market has been performing well since the start of the week. The market has added nearly 6% to its value in the last 24 hours, with the total market cap now standing above the $900 billion mark. 

The performance comes after a poor end to last week, where the total market cap dropped to around $800 billion.

Bitcoin, the world’s largest cryptocurrency by market cap, is outperforming the broader market at the moment. Bitcoin has added nearly 6% to its value in the last 24 hours and now trades above $20k per coin.

Breaking the $20k psychological level is an important step for BTC as the cryptocurrency has been struggling in recent days. Last week, Bitcoin dropped below $18k for the second time in a month.

However, BTC has recovered well and could target the $21k resistance level if the rally is sustained.

Key levels to watch

The BTC/USD 4-hour chart is positive as Bitcoin has been performing well since the start of the week. The technical indicators show that BTC could rally higher if the bulls remain in control.

The MACD line is around the neutral zone and could move into the positive region if the rally continues. The 14-day relative strength index of 63 shows that Bitcoin could soon enter the overbought region if the market conditions improve. 

At press time, BTC trades above $20,200. If the rally continues, BTC could surge past the $21k resistance level before the end of the day. However, it would need the support of the broader market to move above the $22,199 resistance level in the near term.

We are still in a bear market, and Bitcoin could lose its $20k support if it doesn’t break past the $21k resistance level soon. Unless there is an extended bearish run, BTC should stay above the $18,564 support level in the short term.

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• Bitcoin trades at above $19,000 in a bear market and support area

• 200-day moving average joined resistance for Bitcoin

• A breakout of the inside bar pattern could accelerate bear weakness

Bitcoin BTC/USD is trading at 19,580. At the current price, the world’s largest cryptocurrency sits at support. However, Bitcoin may crash below the support as more bearish indicators emerge. Fundamentals and market sentiment also weigh on the price of Bitcoin.

The price of Bitcoin has been so far pegged on the state of the economy. Rising inflation is a bear trigger for Bitcoin. Inflation ignites faster action by central banks to tighten policy. On Thursday, data showed that the Fed’s key inflation gauge rose by 4.7% in May. Despite being lower than estimates of 4.8%, the rate was at levels only seen in the 1980s. 

In its comments, the Fed has hinted at faster rate hikes to tame the costly inflation. Markets anticipate up to a 75 basis point rate hike in July. The faster rate action would be bearish for Bitcoin. Current technical indicators suggest another bear leg is on the horizon.

 The 200-day moving average offers Bitcoin resistance for the first time

Source – TradingView

The weekly chart gives the long-term trend of Bitcoin. The 200-day moving average joined resistance for the cryptocurrency at key support. An RSI reading of 25 may suggest the cryptocurrency is oversold. Nonetheless, this does not mean the bear’s weakness is over. A short-term appreciation in price may be met with a sharp downturn. 

Bitcoin also forms an inside bar pattern at the key support. We need to see whether the weekly candlestick breaks below. A breakout of the inside bar to the downside and below the support will heighten the bear market. The next support is around 11,661.

Concluding thoughts

The 200-day moving average has joined Bitcoin resistance for the first time. The price faces bear pressure at the support. An inside bar breaking out to the downside will weaken the cryptocurrency further.

The post Key breakout to accelerate Bitcoin weakness as price slips below 200-day MA appeared first on CoinJournal.

The cryptocurrency is recovering after a poor start to the day, with most coins still in the red zone.

The cryptocurrency market has had a poor start to the day. The market was down by more than 2% earlier today but is slowly recovering and is only down by 1.25% at the time of this analysis. 

The total cryptocurrency market cap stands above $950 billion. The bulls could look to push this past the $1 trillion mark in the coming days if last week’s momentum can be repeated.

Bitcoin, the world’s leading cryptocurrency, is down by 1.3% in the last 24 hours. The coin dropped below the $21k psychological level a few hours ago but has bounced back and now trades above $21,100.

The bulls have been able to keep Bitcoin above the $20k mark over the past few days. It dropped below $18k earlier this month but has maintained its value above $20k since then.

Key levels to watch

The BTC/USD 4-hour chart is neutral as Bitcoin has slightly underperformed over the past 24 hours.

The MACD line is around the neutral zone, indicating that Bitcoin is neither bullish nor bearish at the moment. The 14-day relative strength index of 51 shows that Bitcoin is no longer in the oversold region. However, it is also some way off from entering the overbought territory.

If the bulls continue to push harder, BTC could cross the first major resistance level at $21,519 before the end of the day. However, it would need the support of the broader market to move past the $22,899 resistance level for the first time in a week.

The broader market is still bearish, and this could see BTC lose its $20,500 support level in the coming hours. A drop below $20,500 could push Bitcoin below the $20k level for the second time in less than a week.

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There is no precise regulation of cryptocurrencies in the United States at the moment, but regulators are focusing their attention on the industry.

Gary Gensler, the chairman of the Security and Exchange Commission (SEC), has pointed out that he believes Bitcoin is the only security. He made this statement during an interview with CNBC on Monday.

When asked about the regulatory efforts by the SEC and the Commodity Futures Trading Commission (CFTC), Gensler said most cryptocurrencies fall under securities. He added that he believes only Bitcoin is a commodity. Gensler said;

“This is a highly speculative asset class. We’ve known this for a long time. The ups and downs of this speculative asset class. When people invest in bitcoin and hundreds of other crypto tokens, they hope for a return, just like when they invest in other financial assets. Many cryptocurrencies have the key attributes of securities, which means they fall under the SEC. Some, like bitcoin, and that’s the only one I’m going to say, are commodities.”

Gensler pointed out that there needs to be a collaboration between the SEC, the CFTC and the banking regulator to ensure that cryptocurrency investors are adequately protected. 

He complained that most tokens currently available in the cryptocurrency market are non-compliant with the financial regulators in place. 

The SEC chair was also asked about stablecoins. Stablecoins have become a hot topic within the financial ecosystem. The recent collapse of the UST stablecoin has seen regulators in various parts of the world turn their attention to stablecoins.

Gensler pointed out that work needs to be done around stablecoins. He added that banking regulators need to ensure that the investing public is protected from stablecoins. He stated that;

“There’s a lot of risk in crypto, and there’s also a lot of risk in classic securities markets. In the U.S, we have market regulators like the CFTC and the SEC to help protect the public against fraud and manipulation in the markets.”

Bitcoin has dropped below $21k after losing more than 1% of its value in the last 24 hours.

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