A daily round-up of the most important news stories within the cryptocurrency market in the last two days, including analysis of Bitcoin and Ethereum.
Bitcoin kept moving in-between the $36k – $38,500 up until the most shocking news that came out in the morning. Russia’s invasion of Ukraine has shaken the investment market, dipping Bitcoin by more than $2,000 in just two hours. In a move which seemed to catch markets by surprise has pushed Bitcoin below its crucial $35k mark – a price last seen in July 2021.
Even, the technical indicators are not in favor of the world’s top cryptocurrency by market cap. The SMA indicator suggests Bitcoin may drop more as its price is trading below the support zone.
On the other hand, the 14-day RSI indicator has also lost, and now sits at 31 – quite below the resistance level of 35
There has also been a significant decrease in the Bitcoin addresses over the day. Looking at the number of active addresses, there has been a sharp downturn since January 2021, showing that there are now few users in the network.
The microanalysis of the market tells that we may see Bitcoin at $32,500 today, if not $28,800 because the bearish divergence demonstrates a massive lack of demand. Besides, the ongoing Russia-Ukraine clash and the rumors about the Fed’s tapering might prevent many retail investors from coming back to the market, which definitely will impact the price of most cryptocurrencies.
Although both technical indicators and market sentiments are negative about Bitcoin, Pantera Capital sees otherwise. In their latest hedge fund report, Bitcoin is expected to do a monster rally due to the moves in the debt market and Fed’s shifting monetary policy. Dan Morehead, CEO of the firm, commented that Bitcoin is currently trading 60% below trend, which he thinks is “quite bullish” as the market is “at a relatively inexpensive place.” Here is an excerpt from the conference call where Dan discusses the crypto market:
Yesterday, Ethereum extended decline below the $2550 level and started an upside correction later to break above the $2750 level. But, the news of Russia’s invasion has put the price backward, which resulted in a sharp decline below the $2500 support level. It also tested the $2300 level and is currently trading at $2391 with more than 10% loss in a single day – the largest since January 21.
Along with Ethereum addresses, the DeFi market has also nosedived, losing about $30 billion in different protocols in the last few days.
Now that the cryptocurrency has failed to start a recovery wave above the $2400 level and as Moving Average Indicator shows, it could move down to its initial downside support at the $2300 level.
If Ethereum fails to resist its support at the $2300 level, we might see a downside break below $2250, and in the case of additional losses, the bears might aim for $2050 level in the near term.
Mexico Might Be The Next After El Salvador to Legalize Bitcoin
Mexican Senator, Indira Kempis is determined to sponsor the crypto bill that seeks to legalize Bitcoin as legal tender in the country. The lawmaker finds El Salvador’s move successful and reasons that the country’s narrative has shifted from violence and crimes. Commenting on how El Salvador is being perceived by the rest of the world, Indira said, “It is a historic opportunity that this type of project is being carried out in a Central American country. Every time El Salvador was discussed, it was always to address issues of migration, violence, and organized crime, and now the world’s gaze is not on those public problems, but because of this great call at a global level with bitcoin.“
Confirming her plans on legalizing Bitcoin, she commented, “I have surrounded myself with several people who have worked with bitcoin for years. I have a community of entrepreneurs, technologists, and friends who are very knowledgeable and have told me for a long time, ‘you have to be and you have to be part of this world’ And now that I am participating in politics, I seek to promote it.”
Brazilian Senate Committee Gives Green Signal to Crypto Bill
In a drive to make cryptocurrencies mainstream for Brazilians, the country’s senate would soon be voting on a crypto bill. The Senate’s Economic Affairs Committee has already approved the bill on 22 February and is now with the Senate and lower house for clearance, which once approved would only require the President’s approval and signature before becoming a law.
Additionally, the bill seeks to mandate it for crypto exchanges and service providers to prevent money laundering and other criminal activities.
Crypto Ads in India to Carry “High Risk” Disclaimer
While the Indian government works on a regulatory framework for digital currencies, new guidelines for advertising and promotion have come out for crypto service providers. Advertising Standards Council of India released these guidelines yesterday, which will require all ads for virtual digital asset products and exchanges to carry the following disclaimer:
“Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.”
As per the rules, the disclaimer should have enough space at the bottom of advertisements if they are in print. For videos, the disclaimer should have a minimum of five seconds of screen time.