2023-07-21 18:04:27
Bitcoin and altcoins were able to post minimal gains this week. However, there are few signs that the exchange rates will remain at this level forever. The week’s most important cryptocurrency news in one place The Democratic presidential candidate, JFK’s nephew Robert F. Kennedy Jr., said that if he is elected president of the United States in 2024, Bitcoin will be a reserve currency behind the dollar as a hedge. He said his plan is to start small. First, only 1% of government securities will be issued backed by gold, silver or bitcoin. Then, this number will be increased year following year. With this strategy, they can once once more strengthen the American currency and start a fight once morest inflation in the long term. Under Kennedy Jr.’s presidency, it is expected that no taxes would be paid on Bitcoin profits either. Last month, the US Secret Service froze several corporate accounts held at Tether USDT hedge manager Deltec Bank. The seizures took place in the middle of an investigation once morest an organization operating cryptocurrency investment and other bank transfer frauds and international money laundering syndicates. The secret service suspects that some customers of the Bahamian bank laundered their income from illegal sources with front companies participating in a cross-border money laundering scheme. Tesla released its second quarter results on Wednesday, July 19. As it turned out, Tesla’s stock of digital assets did not change during the second quarter either. According to the current market rate, he owns mainly Bitcoin worth 184 million dollars. Back in February 2021, Tesla bought a total of $1.5 billion worth of Bitcoin, and then sold 75% of its holdings by the second quarter of 2022. The news of the sale and purchase alone moved the price significantly, so the quarterly report is still causing excitement as to how much BTC the company holds. The price of bitcoin is stuck in a narrow channel The price of bitcoin has increased by regarding 1% in the last 24 hours. However, the largest cryptocurrency fluctuated between the psychologically important $30,000 level and $31,000 for most of the month. Bitcoin failed to consolidate its breakout from a 13-month high it hit near $31,700 last week following a judge ruled in favor of Ripple. In contrast to the stock markets, where the Dow Jones Industrial Average and the S&P 500 are both rising nicely, the price action of bitcoin and other digital assets has stalled. Since the beginning of January, it has been experiencing one of the quietest periods in the crypto markets. The lack of momentum dampened expectations that the price of Bitcoin, which doubled in the first six months of this year following a low in late 2022, would usher in a new bull market trend. It’s also possible that the bull market hasn’t arrived yet. The exchange rate movement is not currently accompanied by as much capital injection into the sector as it was before. This means that, in the short term, this trend may be replaced by a retreat. Investors’ attention is focused on the regulatory environment. Investors are particularly worried regarding developments in the United States. While a federal judge was partially supportive of Ripple’s token offering, a milestone in the case, key questions remain regarding regulatory clarity. That is why it is likely that the launch of the instant Bitcoin ETF might be the next main catalyst for the rise of the crypto market price. This would clear up once and for all all regulatory concerns, which is why investors are only following the events from the sidelines for the time being. In the US, institutional capital flows into the digital assets sector are unlikely to increase significantly until sufficiently clear legislative steps are taken. Of course, the approval of the Bitcoin ETF filed by BlackRock alone would bring a lot of capital into the space. But the digital currency sector is more than just Bitcoin. Uncertain Directional Price Move Ahead BTC price has been in a tight range for an entire month, using the $30,000 level as a focal point for sideways behavior. The current situation is testing both the bulls and the bears. The traders’ patience is slowly running out. This is usually the condition we see before strong moves in the market. Bitcoin does not like to maintain narrow channels for a long time, although the direction of the breakout is still uncertain for now. Increased volatility is certainly just around the corner. The Bollinger Bands technical formation also predicts that this step will happen sooner rather than later. The classic volatility indicator is currently showing an increasingly telling sign that the days of BTC price action tied to a narrow channel are numbered. Bollinger Bands use a standard deviation around a simple moving average to determine when an asset’s price may break out of the band due to a trend shift. On BTC/USD, the upper and lower bands are unusually close at the moment. In fact, the exchange rate has not been in such a tight range this year since the price increase at the beginning of the year. The digital asset market remains remarkably low in volatility. The classic 20-day Bollinger Bands are under extreme pressure – commented the Glassnode analysis company on the graph. They added that with a width of just 4.2%, this is the “quietest BTC market since early January”. Most recently, when the bitcoin exchange rate was stuck in a similar narrow channel, the exchange rate exploded. The exchange rate continued to rise for a whole month, so the January profit rose to around 40% by the end of the month. The exchange rate is only waiting for the last step Bitcoin seems to be closely following the previous BTC price cycles for the time being, so according to another analyst, the time has come for another bull market wave. Analyzing past BTC/USD exchange rate data, he drew attention to the 21-week simple moving average (SMA), which currently stands at $27,900. Once this uptrend line clears the spot price band, a prolonged uptrend might follow, so the 21-week SMA might be nicknamed the “bull line.” Titan of Crypto called the phenomenon a “bull market breakout”: “Once the weekly 21 SMA crosses BTC’s current price, the bull market starts. Get ready, it’s getting closer.” the analyst told his followers. Bitcoin’s last such crossover took place four years ago, in early 2019. The exchange rate was then at the same turning point in the previous cycle as what can await BTC now. Another analyst, Moustachem notes, has heralded every previous Bitcoin bull market so far. And now it also indicates that if the monthly candle closes above the 20-month SMA, every subsequent candle closes above it until the top of the cycle. Once Bitcoin closed above its moving average, it NEVER went below it AGAIN – until the top of the cycle. This is exactly how it happened in 2016-2018 and 2019-2021. The 20-month SMA currently stands at $28,585. So the big question is where will the BTC price end this month.
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