The Crypto Daily – Movers and Shakers – September 25th, 2021

Bitcoin, BTC to USD, slid by 4.54% on Friday. Reversing a 3.01% gain from Thursday, Bitcoin ended the day at $42,856.0.

A mixed start to the day saw Bitcoin rise to a mid-morning intraday high $45,164.5 before hitting reverse.

Falling short of the first major resistance level at $45,555, Bitcoin slid to a late morning intraday low $40,755.0.

Bitcoin fell through the first major support level at $43,658 and the second major support level at $42,431.

More significantly Bitcoin also fell through the 38.2% FIB of $41,592 before briefly revisiting $43,200 levels.

Bitcoin broke back through the 38.2% FIB and the second major support level to end the day at $42,800 levels.

The near-term bullish trend remained intact, in spite of the latest return to sub-$40,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a bearish day on Friday.

Chainlink and Bitcoin Cash SV slid by 8.64% and by 8.55% respectively to lead the way down.

Binance Coin (-7.40%), Crypto.com Coin (-6.30%), Ethereum (-7.10%), Litecoin (-7.10%), and Ripple’s XRP (-5.82%) also struggled.

Cardano’s ADA (-2.10%) and Polkadot (-3.41%) saw relatively modest losses, however.

In the current week, the crypto total market rose to a Monday high $2,136bn before sliding to a Tuesday low $1,744bn. At the time of writing, the total market cap stood at $1,941bn.

Bitcoin’s dominance rose to a Monday high 42.97% before falling to a Friday low 40.99%. At the time of writing, Bitcoin’s dominance stood at 41.50%.

This Morning

At the time of writing, Bitcoin was down by 0.05% to $42,834.0. A mixed start to the day saw Bitcoin fall to an early morning low $42,652.0 before rising to a high $42,986.8.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a bullish start to the day.

At the time of writing, Polkadot was up by 3.70% to lead the way.

BTCUSD 250921 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move back through the $42,925 pivot to bring the first major resistance level at $45,095 into play.

Support from the broader market would be needed for Bitcoin to break back through to $45,000 levels.

Barring a broad-based crypto rally, the first major resistance level and Friday’s high $45,164.5 would likely cap the upside.

In the event of a broad-based crypto rally, Bitcoin could test resistance at $48,000 levels before any pullback. The second major resistance level sits at $47,335.

Failure to move back through the $42,925 pivot would bring the 38.2% FIB of $41,592 and the first major support level at $40,686 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of the second major support level at $38,516.

Dollar Climbs as Evergrande Uncertainty Percolates

China Evergrande Group owes $305 billion and has run short on cash, missing a Thursday deadline for paying $83.5 million and leaving investors questioning whether it will make the payment before a 30-day grace period expires. A collapse of the company could create systemic risks to China’s financial system.

The safe-haven dollar had its biggest one-day percentage drop in about a month on Thursday after Beijing injected new cash into the financial system and Evergrande announced it would make interest payments on an onshore bond, boosting risk sentiment.

The offshore Chinese yuan weakened versus the greenback at 6.4641 per dollar.

The decline came a day after the greenback was lifted by Wednesday’s announcement from the U.S. Federal Reserve that it will likely begin to trim its monthly bond purchases as soon as November and flagged interest rate increases may follow suit sooner than expected as the central bank moves away from its pandemic crisis policies.

“We are in one of the situations, and this doesn’t always happen, where the dollar is the beneficiary of multiple ideas,” said Joseph Trevisani, senior analyst at FXStreet.com.

“The U.S. economy does look better than most of its competitors, there is lingering fear out there over Evergrande and what else is out there in the rather untransparent Chinese economy and political system, plus the Fed appears finally ready.”

The dollar index rose 0.237%, with the euro down 0.2% to $1.1713.

Kansas City Fed President Esther George said the U.S. labor market has already met the central bank’s test to pare its monthly bond purchases, and the discussion should now turn to how its massive bondholding could complicate the decision on when to hike rates.

Cleveland Fed President Loretta Mester echoed the sentiment for a tapering this year, and said the central bank could start raising rates by the end of next year should the job market continue to improve as expected.

In prepared remarks in a listening session with a wide swath of economic players, Fed Chair Jerome Powell did not elaborate on his own economic or monetary policy outlook, which he had outlined at the close of the two-day Fed meeting on Wednesday.

Sterling weakened a day after hawkish comments from the Bank of England on Thursday pushed the pound to its biggest one-day percentage gain since Aug. 23.

The Japanese yen weakened 0.43% versus the greenback at 110.77 per dollar, while Sterling was last trading at $1.3666, down 0.36% on the day.

Cryptocurrencies slumped after China’s most powerful regulators increased the country’s crackdown on the digital assets, with a blanket ban on all crypto transactions and crypto mining.

Bitcoin, the world’s largest cryptocurrency, last fell 5.89% to $42,256.47.

Smaller coins, which generally move in tandem with bitcoin, also dropped. Ether last fell 8.08% to $2,899.10 while XRP last fell 7.2889413% to $0.93.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Chuck Mikolajczak; Editing by Dan Grebler and Sonya Hepinstall)

Bitcoin Price Update – Could China’s Crypto Crackdown Trigger a Flash Crash?

  • China’s central bank announced all transactions of crypto-currencies illegal, effectively banning digital tokens such as Bitcoin.
  • “Virtual currency-related business activities are illegal financial activities,” the People’s Bank of China said, warning it “seriously endangers the safety of people’s assets.”
  • With the heightened default risk surrounding Evergrade, I see the potential for a widespread contagion and rapid deleveraging that could trigger a flash crash in crypto.

BITCOIN FUTURES DAILY: Bitcoin is down on today’s news. Breaking below $40,000 would imply a secondary top at $53,125 and promote more sideways consolidation. Ultimately, a breakdown below $28,000 is needed to confirm a crypto bear market. Until then, prices are merely consolidating.

A screenshot of a computer Description automatically generated with medium confidence

Note: To signal a flash crash, bitcoin would have to drop below $28,000. 

Deleveraging: The Chinese economy is highly leveraged. Many of its citizens have their wealth wrapped up in real estate. The situation with Evergrande is horrible and could lead to massive losses. If a deleveraging begins, the government may have to step in to cover losses and maintain order. If they fail to respond appropriately, we could see a sharp selloff in most assets, especially in overleveraged crypto.  

Potential Flash Crash: One scenario I’m considering is a potential liquidity shock and flash crash in crypto exchanges. Let me explain; if we see a panic deleveraging (now or later), liquidity could dry up along with buy orders. If buy orders dry up while investors are still rushing to the exits – crypto prices could plummet, temporarily. How low could they go? I have no idea, but theoretically, some could drop to the lowest buy order on the books. A flash crash would likely last just a few seconds before exchanges shutter.

The flash crash described above is unlikely but certainly possible given today’s fast-moving markets. If a flash crash occurs, it’s most likely to happen over the weekend (when traditional banks and funding sources are closed). Think about it: low weekend trading volume combined with a deleveraging event could trigger margin calls at a time when traders that are leveraged to the max can’t assess additional funds. That could result in forced selling.

Final thoughts, if crypto transactions are illegal in China, and there is a rush to liquidity – investors may switch back to gold to protect purchasing power. If that occurs, precious metals could see a nice boost.

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For regular updates, please visit here.

For a look at all of today’s economic events, check out our economic calendar.

Chinese Crackdown on Bitcoin Another Blow to Cathie Wood’s ARK ETF

Wood, who has said that bitcoin will rally to $500,000, has slightly more than $1 billion invested in cryptocurrency trading firm Coinbase Global Inc, a position that makes up approximately 4.7% of her $21.7 billion fund. Shares of Coinbase fell more than 1.5% on Friday after Chinese regulators announced a blanket ban on all crypto transactions and mining.

China’s move triggered a selloff in bitcoin, taking the value of the world’s largest cryptocurrency down more than 5% to approximately $42,475.

ARK Innovation was down 1.4% in midday trading on Friday.

The declines come as several of Wood’s top holdings this year are floundering during a market rally that has pushed up the benchmark S&P 500 more than 18% for the year to date.

While shares of Tesla Inc, Wood’s top holding, are up 8% for the year, large positions in companies including Teladoc Health Inc and Zoom Video Communications Inc are down 20% or more over the same time amid a shift away from the stay-at-home technology stocks that dominated during the COVID-19 lockdowns of 2020.

ARK Invest did not respond to a request for comment on this story.

Overall, the ARK Innovation Fund is down 4.4% for the year to date, putting it in the bottom 100th percentile among the 595 other U.S. mid-cap growth funds, according to Morningstar.

Over the last five years, however, the fund is up an annualized 42.3% a year, placing it among the top 1 percentile in its category.

That strong long-term performance is likely what is keeping retail investors from selling their stake in the fund this year despite its poor showing, said Todd Rosenbluth, director of fund research at CFRA.

“ARKK is down for the year and has significantly lagged behind index-based growth ETFs yet most investors have remained loyal, likely due to fond memories of prior periods of relatively strong performance,” he said. “But as the recent period of underperformance persists it is harder to justify not considering alternatives.”

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by David Randall in New York; Additional reporting by Saqib Iqbal Ahmed in New York; Editing by Ira Iosebashvili and Matthew Lewis)

Bitcoin Price Sinks as China Takes Aim

Bitcoin has had a difficult week and is getting eerily close to the $40,000 level. Bitcoin slipped another 5% in the last 24 hours to hover at $41,442. Over the past seven days, bitcoin is down nearly 13%.

The market sell-off can be traced back to developments in China, where the central bank has issued a nationwide ban on bitcoin transactions, blaming fraud, money laundering and energy consumption. China officials are also taking aim at bitcoin mining once again. Meanwhile, fears surrounding China’s debt-laden real estate developer Evergrande also seem to have spilled over into the crypto market.

Targeting Bitcoin

The People’s Bank of China (PBOC), the country’s central bank, has declared that crypto-related activities are now illegal. It is not uncommon for China to target bitcoin. In the spring, officials targeted bitcoin mining, banning the activity of securing the blockchain and minting new coins in the country. That sent bitcoin miners packing to other jurisdictions and put a dent in the hashrate, or miners’ computing power, at the time. Bitcoin’s hashrate has since recovered.

Now China is painting its ban with a broader brush, added trading, issuing tokens and derivatives such as bitcoin futures to its list of banned activities. International crypto companies that have a presence in China are also banned from operating there. China officials criticized bitcoin speculation, warning that they are watching closer than ever to spot and put an end to crypto activities.

Fight Another Day

Despite the sell-off, bitcoin-market stalwarts are not spooked. Instead, they are reminding one another of every other time that China’s government threw the hammer down on bitcoin and other cryptocurrencies, yet bitcoin has always lived to fight another day.

China has been banning bitcoin in one form or another for years, threatening to shutter cryptocurrency exchanges or repeatedly attempting to ban bitcoin mining. Nonetheless, bitcoin’s value continues to balloon over the long term despite China’s interference.

Since 2013, when China attempted to ban the leading cryptocurrency, the bitcoin price is up more than 3,600%. China made similar attempts in 2017 during the ICO craze and nearly every year since, as pointed out by Blockworks.

While the bitcoin price sell-off is pressuring altcoins as well, the broader cryptocurrency market cap remains close to $2 trillion.

Bitcoin Battling To Stay Above $41k Following China’s Latest Crackdown

The Chinese government has come out once again to crack down on cryptocurrencies, and this time Bitcoin is struggling to maintain its price above $41k.

China Readies Coordinated Crack Down On Cryptocurrencies

The People’s Bank of China has come out today to reveal a coordinated effort that would further crack down on the cryptocurrency activities. The PBoC said Bitcoin, Ether and stablecoins such as Tether (USDT) do not qualify as legal tender in China and cannot be used in the currency market.

This latest development doesn’t come as a surprise to many, as China has a history of cracking down on crypto-related activities in the country. Over the years, the government has banned crypto exchanges from operating in China; it has stopped cryptocurrency mining activities, initial coin offerings (ICOs) were also banned, and every other crypto social event.

The PBoC told financial institutions operating in the country that dealing with cryptocurrencies is illegal, and they will now work harder to crack down on crypto transactions. According to the apex bank, the PBoC, alongside nine other Chinese regulators, including the Cyberspace Administration of China and the Ministry of Public Security, has come up with a coordinated mechanism to stop financial institutions from participating in any cryptocurrency transactions.

The bank said the authorities will are now better equipped to monitor and detect illegal cryptocurrency transactions.

Bitcoin Slips Below The $42k Mark

Bitcoin has been struggling since the start of the week. The leading cryptocurrency and, in fact, the broader crypto market has lost hundreds of billions of dollars, with the bearish sentiment still in play.

Following China’s news today, Bitcoin is down by more than 6% and is struggling to stay above the $41k level. With the current bearish sentiment in play, Bitcoin could likely fall below the $40k mark for the first time since early August.

BTC/USD chart. Source: FXEMPIRE

However, while in the short term, Bitcoin’s price might decline, the cryptocurrency market has always bounced back and performed well after China’s negative news. Historically, Bitcoin has performed excellently in the medium and long-term after any ban on cryptocurrency-related activities in China.

Market experts are still optimistic that Bitcoin could touch the $100k mark before the end of the year as the wave of institutional adoption seen in the market is a sign of greater things to come.

Dogecoin Faced Strong Resistance Near $0.23

Dogecoin Pulls Back Amid Weakness In Altcoins

Dogecoin is currently trying to settle below the support level at $0.2190 while Bitcoin is trying to get to the test of the resistance at the 50 EMA at $45,300.

Bitcoin managed to get from $40,000 to $45,000 in just two days as traders rushed to buy the world’s leading cryptocurrency after the major pullback. Currently, it is stuck near the $45,000 level.

Meanwhile, other cryptocurrencies are moving lower. Ethereum is trying to settle below $3,100. XRP continues its attempts to settle below $0.97 while Shiba Inu is testing the support at the 50 EMA at $0.0000073.

Altcoins are clearly under pressure today, which is bearish for Dogecoin. However, the situation may change quickly in case Bitcoin settles above the 50 EMA as this move will likely provide additional support to crypto markets.

Technical Analysis

dogecoin september 24 2021

Dogecoin faced strong resistance near $0.23 and declined towards the support level at $0.2190. In case Dogecoin settles below this level, it will move towards the next support at $0.2130. RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

If Dogecoin settles below $0.2130, it will head towards the support at $0.2050. A move below this level will open the way to the test of the support which is located near the recent lows at $0.20.

On the upside, the nearest resistance level for Dogecoin is located at $0.2255. A successful test of this level will push Dogecoin towards the resistance at the recent highs at $0.23. This resistance level has already been tested several times and proved its strength.

If Dogecoin manages to settle above the resistance at $0.23, it will head towards the next resistance level at $0.2350. A successful test of this level will open the way to the test of the resistance which is located at the 20 EMA at $0.24.

For a look at all of today’s economic events, check out our economic calendar.

The Crypto Daily – Movers and Shakers – September 24th, 2021

Bitcoin, BTC to USD, rose by 3.01% on Thursday. Following a 6.94% rally on Wednesday, Bitcoin ended the day at $44,884.7.

A bearish start to the day saw Bitcoin fall to an early morning intraday low $43,102.0 before making a move.

Steering clear of the 38.2% FIB of $41,592 and the first major support level at $41,450, Bitcoin rallied to a late intraday high $45,000.0.

Bitcoin broke through the first major resistance level at $44,849 to end the day at $44,880 levels.

The near-term bullish trend remained intact, in spite of the latest return to sub-$40,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Thursday.

Bitcoin Cash SV (-0.93%) and Ripple’s XRP (-0.24%) bucked the trend on the day.

It was a bullish day for the rest of the majors.

Chainlink rose by 4.12% to lead the way, with Cardano’s ADA (+3.07%), Ethereum (+2.48%), and Polkadot (+2.65%) close behind.

Binance Coin (+1.25%), Crypto.com Coin (+0.55%), and Litecoin (+1.53%) trailed the front runners, however.

In the current week, the crypto total market rose to a Monday high $2,136bn before sliding to a Tuesday low $1,744bn. At the time of writing, the total market cap stood at $2,043bn.

Bitcoin’s dominance rose to a Monday high 42.97% before falling to a Thursday low 41.07%. At the time of writing, Bitcoin’s dominance stood at 41.46%.

This Morning

At the time of writing, Bitcoin was up by 0.21% to $44,978.9. A mixed start to the day saw Bitcoin fall to an early morning low $44,738.0 before rising to a high $44,993.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Crypto.com Coin led the way, rising by 2.39%, with Litecoin up by 1.10%.

Binance Coin (+0.37%), Bitcoin Cash SV (+0.12%), and Cardano’s ADA (+0.51%) also found early support.

It was a bearish start for the rest of the majors, however.

At the time of writing, Polkadot was down by 0.47% to lead the way down.

BTCUSD 240921 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid the $44,329 pivot to bring the first major resistance level at $45,555 into play.

Support from the broader market would be needed for Bitcoin to break back through to $45,500 levels.

Barring a broad-based crypto rally, the first major resistance level would likely cap the upside.

In the event of a broad-based crypto rally, Bitcoin could test resistance at $48,000 levels before any pullback. The second major resistance level sits at $46,227.

A fall through the $44,329 pivot would bring the first major support level at $43,658 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$43,000 levels. The second major support level sits at $42,431.

Twitter Readies Bitcoin Payments, Explores NFTs

Jack Dorsey has already integrated bitcoin into his payments company, Square. Users can buy and sell bitcoin with the Cash App. In addition, Square holds thousands of bitcoins on its balance sheet worth more than $350 million based on the most recent BTC price. Now Dorsey is expanding bitcoin-related features to his social media platform, Twitter.

Twitter has decided to roll out its Tips feature to global users including bitcoin payments. The new tool gives users the ability to link to payment platforms, including the Cash App, Venmo and others, so followers can not only show their support by liking a tweet but also by sending money. Twitter says it plans to integrate the Tips feature on iOS to start followed by Android devices. Below is a list of the payment platforms Twitter supports.

Source: Twitter

The company also revealed that it won’t be taking a cut from Tip payments.  The stock rallied anyway, rising nearly 4% on the day to just below $67.

Crypto Payments

Twitter is also integrating bitcoin payments via Strike, which in turn uses the Lightning Network, a blockchain-fueled network that enables real-time transactions. To participate, users in eligible geographies must create a Strike account to be able to receive bitcoin payments. To send bitcoin payments, users can any bitcoin Lightning wallet.

Brian Armstrong, CEO of Coinbase, called Twitter bitcoin payments “huge,” saying it will only be a matter of time before other social media platforms follow in its footsteps. He pointed to Reddit, which is going in a similar direction.

Twitter and NFTs

Twitter doesn’t plan to stop there and is also exploring adding support for non-fungible tokens, which are largely an Ethereum phenomenon. The crypto community is already known for adding NFTs as their profile picture on their Twitter accounts, so this would not be a stretch.

Twitter also wants to add an NFT authentication feature for creators of these popular digital assets. Doing so would let Twitter users verify their NFT avatars.

Dorsey is a Bitcoin bull while most NFTs are built on Ethereum. He has already tipped his hand to a decentralized finance (DeFi) platform built on the Bitcoin blockchain. DeFi is similarly largely an Ethereum trend.

Dollar Slumps as Risk Appetite Rebounds

Investors’ risk appetite improved after Beijing injected fresh cash into its financial system ahead of an $83.5 million bond coupon by embattled property giant Evergrande, at risk of becoming one of the world’s largest-ever corporate defaults.

Worries about Evergrande’s payment obligations and what systemic risks to China’s financial system the property giant’s difficulties pose have weighed on global financial risk sentiment in recent sessions.

“Commodity currencies are broadly higher while havens are weaker, leaving the USD trading generally lower after a firm close following the FOMC (Federal Open Market Committee),” Shaun Osborne, chief currency strategist at Scotiabank, said in a note.

The U.S. Dollar Currency Index, which measures the greenback against a basket of six rivals, was 0.5% lower at 93.037. The index, which had risen 0.25% on Wednesday, was on pace for its biggest daily percentage drop in a month but remains close to the near 10-month high touched in late August.

The offshore Chinese yuan strengthened versus the greenback at 6.4599 per dollar.

The dollar found little support from data that showed the number of Americans filing new claims for jobless benefits unexpectedly rose last week amid a surge in California.

Thursday’s improved mood boosted risk-sensitive commodity currencies, with the Australian dollar rising 0.9% and the New Zealand dollar up 1.0%.

The improved risk-appetite was reflected in Wall Street’s major equity indexes, with the S&P 500 on track for a gain of more than 1% and its largest two-day percentage gain since late July.

On Wednesday, the Federal Reserve said it will likely begin reducing its monthly bond purchases as soon as November and signaled interest rate increases may follow more quickly than expected.

While positive for the dollar, the boost from the Fed’s announcement was undercut by hawkish messages from several central banks in Europe, and as Norway became the first developed nation to raise rates.

Norway’s crown jumped to a 3-1/2 month high versus the euro on Thursday after the central bank raised its benchmark interest rate and said more hikes will follow in the coming months.

Sterling extended its rise on Thursday after the Bank of England said two of its policymakers had voted for an early end to pandemic-era government bond buying and markets brought forward their expectations for an interest rate rise to March.

In emerging markets, the Turkish lira plummeted to a record low after a surprise interest rate cut of 100 basis points to 18% that came despite inflation hitting 19.25% last month

Meanwhile, bitcoin extended its recovery from a sharp fall earlier this week, rising 2.42% to a 3-day high of $44,642.78.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Saqib Iqbal Ahmed and Chuck Mikolajczak; Additional reporting Sujata Rao and Saikat Chatterjee in London and Tom Westbrook in Singapore; Editing by Bernadette Baum, Will Dunham and Hugh Lawson)

Bitcoin Price Prediction – Bulls Avoid sub-$43,000, Bringing $45,000 into Play

Following a broadly bullish session on Wednesday, it’s been a bearish morning for Bitcoin and the broader market.

At the time of writing, Bitcoin, BTC to USD, was down by 0.01% to $43,569.7.

A mixed start to the day saw Bitcoin fall to an early morning low $43,102.0 before finding support.

Steering clear of the 38.2% FIB of $41,592 and the first major support level at $41,450, Bitcoin rose to a mid-morning high $44,356.0.

In spite of the recovery, Bitcoin fell well short of the first major resistance level at $44,849, leading to a pullback to sub-$44,000 levels.

BTCUSD 230921 Hourly Chart

The Rest of the Pack

It has also been a bearish morning for the broader crypto market.

At the time of writing, Chainlink was down by 4.01% to lead the way down, with Cardano’s ADA down by 3.17%

Binance Coin (-2.22%), Bitcoin Cash SV (-2.81%), Litecoin (-2.28%), Polkadot (-2.12%), and Ripple’s XRP (-2.76%) also struggled.

Crypto.com Coin (-0.72%) and Ethereum (-0.48%) saw relatively modest losses, however.

Through the early hours, the crypto total market cap fell to an early morning low $1,954bn before rising to a high $2,018bn. At the time of writing, the total market cap stood at $1,972bn.

Bitcoin’s dominance fell to an early morning low 41.34% before rising to a high 41.66%. At the time of writing, Bitcoin’s dominance stood at 41.55%.

For the Afternoon Ahead

Bitcoin would need to avoid a fall through the $42,725 pivot to bring the first major resistance level at $44,849 back into play.

Support from the broader market will be needed, however, for Bitcoin to break out from the morning high $44,356.0.

Barring a broad-based crypto rebound, the first major resistance level and resistance at $45,000 would likely cap any upside.

In the event of an extended rally through the afternoon, Bitcoin could test resistance at $48,000 before any pullback. The second major resistance level sits at $46,124.

A fall through the $42,725 pivot would bring the 38.2% FIB of $41,592 and the first major support level at $41,450 into play.

Barring an extended sell-off through the afternoon, however, Bitcoin should avoid sub-$40,000 support levels. The second major support level sits at $39,326.

Looking beyond the support and resistance levels, we saw the 50 EMA narrow on the 100 and the 200 EMAs through the morning.

We also saw the 100 EMA hold steady on the 200 EMA, providing support.

Through the 2nd half of the day, a further narrowing of the 50 EMA on the 100 and 200 EMAs would bring $45,000 levels into play.

Key through the late morning and early afternoon would be to avoid a fall through the day’s pivot to $42,725 to support Bitcoin and the broader market.

Bitcoin Continues To Recover After Recent Sell-Off

Bitcoin Is Moving Higher

Bitcoin managed to settle above the resistance at $42,600 and is testing the next resistance level at $44,000. Ethereum is also moving higher. The world’s second biggest cryptocurrency is currently trying to settle above $3,100. Dogecoin is testing the resistance at $0.2255, while XRP is trying to settle above $1.00.

The recent sell-off in crypto markets was fast, but most cryptocurrencies quickly managed to gain upside momentum which is a bullish sign. Bitcoin Dominance, which measures the market capitalization of Bitcoin as a percentage of total crypto market capitalization, has also moved lower, which is typical for days when crypto markets are in a bullish mood.

It looks that crypto markets have shrugged off fears about the potential default of China’s developer Evergrande, which have put significant pressure on riskier assets earlier this week. The recent commentary from Fed Chair Jerome Powell was a bit more hawkish than expected but markets remained optimistic.

Technical Analysis

bitcoin september 23 2021

 

Bitcoin is currently testing the nearest resistance level at $44.000. In case this test is successful, Bitcoin will move towards the next resistance which is located at the 50 EMA at $45,300. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

In case Bitcoin manages to settle above the 50 EMA, it will continue its upside move and head towards the 20 EMA which is located near the $46,000 level. A move above this level will push Bitcoin towards the next resistance at $47,000. If Bitcoin gets above this level, it will head towards the resistance at $48,000.

On the support side, the previous resistance at $42,600 will serve as the first support level for Bitcoin. A successful test of this level will push Bitcoin towards the support at $41,300. If Bitcoin declines below this level, it will head towards the support at $40,000. A move below $40,000 will open the way to the test of the support at $39,300.

For a look at all of today’s economic events, check out our economic calendar.

Why are Regulators More Focused on Clamping Down Crypto Platforms?

For years now, regulators have conflicted with major crypto projects. However, in recent months, regulators have been increasing their efforts to control crypto. National and international regulators like the SEC, FCA, CTFC and FSCA often conflict with crypto networks.

They seem to be more focused on clamping down on crypto projects. The question is, why are they fighting crypto? Keep reading for more. The guide will provide examples of projects involved in SEC conflicts, and discuss why regulators continue to fight crypto.

Projects Involved In Regulatory Fights

Coinbase

One of the biggest most recent spats was between the SEC and Coinbase. Currently, Coinbase is the most popular crypto exchange. It has tons of trading pairs and markets available for users.

However, Coinbase conflicted with the SEC. The network announced that they would be introducing a Lending service(Lend) to help users earn interest.

Immediately on announcing the product’s launch, the SEC warned that they would sue Coinbase if they launched Lend. They said that the product in question falls under the securities category. However, immediately after the SEC response, the Coinbase CEO went public, terming the SEC sketchy. Later, Coinbase cancelled the launch of the product.

Binance

Another ongoing spat is concerning the Binance exchange. Recently, this network has been on the SEC radar with several accusations. Binance has been facing compliance issues. Its activities were banned in the US, leading to the creation of Binance US.

In August, The SEC noted that it was holding some documents from the Binance network. However, they had not yet filed a complaint. The SEC began investigating the Binance exchange for possible insider trading and market manipulation activities. Investigations will look into whether the Binance network profited from insider information.

However, The Binance network publicly confirmed that they have zero tolerance for any insider trading. They have policies for preventing such occurrences within the network. Even though the SEC is investigating Binance, there is no formal charge.

Other regulators like CTFC also investigated whether Binance allowed US users to exchange Bitcoin derivatives. The US Treasury, FSCA, FCA have also shown interest in Binance’s operations.

Bitmex Exchange

Another trading platform that has been on the wrong side with the regulators is the Bitmex exchange. In October last year, the exchange and its top executives faced charges of failing to implement AML. Several of its top executives were arrested earlier this year. Bitmex faced accusations of allowing users from sanctioned countries like Iran to operate.

Robinhood

Robinhood is not essentially a crypto-only exchange. This network has been working on fiat related trades too. However, the SEC announced plans to ban the Payment For Order Flow. The PFOF is a system that allows the Robinhood network by itself to make an income. The SEC banning would mean that Robinhood loses its primary way of earning income. SEC’s actions could be due to Robinhood’s connection to crypto.

Why are Regulators Fighting Crypto Platforms?

The SEC is fighting against crypto and any platforms slightly connected to the blockchain world. XRP, Binance, Coinbase, Bitmex and Robinhood are among the few cases of regulator’s fight against crypto. So, why are regulators focused on a war against crypto? Let’s consider several reasons.

To Have Control Over Crypto

The most primary reason is to gain control of crypto. Controlling digital assets means they will be capable of creating regulations for the crypto space.

For instance, the SEC expressed interest in crypto networks registering some crypto assets on multiple occasions. In fact, in the spat between Coinbase and SEC, the regulator wanted Coinbase to register the Lend service as a regulated product.

The problem is, even after one decade of crypto’s existence, the SEC does not have a list of crypto tied securities. As such, this network is always in fights with crypto and blockchain networks.

It’s in the interest of Other regulatory bodies to centralize the operations of crypto exchanges to regulate them.

To Get More Taxes From Crypto

Some government agencies are interested in earning more income from crypto networks. Recently, in the US, congress introduced regulations in crypto to gain more taxes. Whereas, experts still thought US government owned more bitcoins than any other holder.

When discussing the $1 trillion infrastructure bill, they included a section that will increase crypto. The new bill touches all projects slightly tied to crypto. The idea is to raise billions for funding the infrastructure bill. Thus, the increased efforts by regulating authorities like treasury are to get more income from crypto.

To Protect Consumers

Another for the increased fights against crypto is consumer protection. Generally, crypto since its launch has been under criticism from security and regulating authorities. Many claims that crypto is a mere bubble, and as such, can easily disappoint users. Therefore, the SEC, CTFC and FCA are trying to protect their users.

To Ban Cryptocurrency

Finally, governments may be using regulatory bodies to fight against crypto and ultimately kill it. Some governments like China have enhanced the fight on crypto, intending to ban it. As such, they are increasing regulations every other day.

Final Word

This guide has looked into the regulatory environment surrounding crypto today. It seems like many regulators today are trying to suppress crypto in every way. The cases of Coinbase, Binance, Bitmex and Robinhood, are good examples of regulatory suppression. But why are they fighting crypto?

There are four possible reasons behind their increased fights. Foremost, most governments and regulators want to have control of crypto. They want to centralize the blockchain world and create regulations to take complete control.

Moreover, the regulators’ interest could be increasing the national revenues. It’s also possible that consumer protection and possible crypto bans are reasons behind the increased regulations. However, Governments should focus more on helping crypto grow instead of suppressing its adoption.

The Crypto Daily – Movers and Shakers – September 23rd, 2021

Bitcoin, BTC to USD, rose by 6.94% on Wednesday. Reversing a 5.29% loss from Tuesday, Bitcoin ended the day at $43,574.0.

A bearish start to the day saw Bitcoin fall to an early morning intraday low $40,601.0 before making a move.

Steering clear of the first major support level at $39,076, Bitcoin rallied to a late afternoon intraday high $44,000.0.

Bitcoin broke through the 38.2% FIB of $41,592 and the first major resistance level at $43,023 to end the day at $43,500 levels.

The near-term bullish trend remained intact, in spite of the latest return to sub-$40,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $27,237 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Wednesday.

Crypto.com Coin fell by 1.04% to buck the trend.

It was a bullish day for the rest of the majors.

Ripple’s XRP surged by 14.84% to lead the way, with Cardano’s ADA (+13.88%), Chainlink (+14.06%), Ethereum (+11.31%), and Polkadot (+11.98%) close behind.

Binance Coin (+10.16%), Bitcoin Cash SV (+6.08%), and Litecoin (+8.69%) also found strong support, however.

Early in the week, the crypto total market rose to a Monday high $2,136bn before sliding to a Tuesday low $1,744bn. At the time of writing, the total market cap stood at $1,968bn.

Bitcoin’s dominance rose to a Monday high 43.00% before falling to a Tuesday low 41.22%. At the time of writing, Bitcoin’s dominance stood at 41.46%.

This Morning

At the time of writing, Bitcoin was down by 0.61% to $43,308.0. A mixed start to the day saw Bitcoin rise to an early morning high $43,857.9 before falling to a low $43,302.0.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

Crypto.com Coin was up by 1.14% to buck the early trend.

It was a bearish start for the rest of the majors, however.

At the time of writing, Ripple’s XRP was down by 1.28% to lead the way down.

BTCUSD 230921 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid the $42,725 pivot to bring the first major resistance level at $44,849 into play.

Support from the broader market would be needed for Bitcoin to break back through to $44,000 levels.

Barring a broad-based crypto rally, the first major resistance level and resistance at $45,000 would likely cap the upside.

In the event of a broad-based crypto rally, Bitcoin could test resistance at $48,000 levels before any pullback. The second major resistance level sits at $46,124.

A fall through the $42,725 pivot would bring the 38.2% FIB of $41,592 and the first major support level at $41,450 into play.

Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$40,000 levels. The second major support level sits at $39,326.

Dollar Choppy After Fed Statement, Evergrande Exhale Lifts Risk-Sensitive Currencies

The Federal Reserve on Wednesday cleared the way to reduce its monthly bond purchases “soon” and signaled interest rate increases may follow more quickly than expected, with half of the 18 U.S. central bank policymakers projecting borrowing costs will need to rise in 2022.

“The tapering of quantitative easing seems very likely now in November but this was something of a given and remains couched in a lot of qualifying criteria in the event that various risks emerge, whether it is the debt ceiling debate, COVID outlook, the China property market intervening,” said Steven Violin, portfolio manager at F.L.Putnam Investment Management Company in Wellesley, Massachusetts.

The dollar index rose 0.094%, alternating between gains and declines after the announcement, with the euro down 0.1% to $1.1711.

Property giant and Asia’s biggest junk bond issuer Evergrande said it “resolved” one payment due on Thursday via a private negotiation, easing concerns of default and possible contagion risk, while the People’s Bank of China injected 90 billion yuan into the banking system to support markets.

“Being able to make tomorrow’s bond coupon payment, that definitely lifted risk sentiment overnight and you saw a typical follow-through reaction in risk currencies, so Canadian dollar high, Aussie dollar higher, Kiwi dollar higher – that was kind of an understandable reaction,” said Erik Bregar, an independent FX analyst in Toronto.

Still, uncertainty remains whether the developer will be able to pay the coupon on its offshore dollar bonds, due on Thursday.

The Australian dollar rose 0.33% versus the greenback to $0.726 after rising as much as 0.49% to $0.7268 while the Canadian dollar rose 0.58% versus the greenback to 1.27 per dollar.

The offshore Chinese yuan strengthened versus the greenback to 6.4628 per dollar.

The safe-haven Japanese yen weakened 0.50% versus the greenback to 109.78 per dollar in the wake of the Bank of Japan’s decision to keep policy on hold.

Sterling was last trading at $1.3637, down 0.16% on the day ahead of a policy announcement by the Bank of England on Thursday, with expectations for a rate hike being pushed down the road by investors.

In cryptocurrencies, Bitcoin last rose 6.93% to $43,409.48 following three straight days of declines.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Chuck Mikolajczak; Editing by Will Dunham and Andrea Ricci)

Bitcoin Adoption: Which Countries Could Follow El Salvador?

The Bitcoin Law became effective on September 7, compelling businesses to accept bitcoin as a form of payment for all transactions. This has slightly increased the exchange rate of Bitcoin, which according to FXEmpire is now $42 000. El Salvador has made the first move; which other countries could follow?

Panama

Panama’s move towards bitcoin adoption occurred on the same day that El Salvador became the first country to accept bitcoin as legal tender. The country is adding its own unique stamp to the process by accepting other cryptocurrencies including Ethereum.

Panama Congressman Gabriel Silva stated on Twitter that Panama unveiled a draft cryptocurrency law. Just like El Salvador, the country seeks to increase the use of bitcoin and Ethereum as a payment option. Another aim is to encourage the use of blockchain technology in the public sector and the financial industry.

Panama’s compatibility with the digital economy, including blockchain crypto assets and the internet, is explained in the bill. The draft law promotes bitcoin as an inflation hedge and emphasizes its divisible character, stating, for example, that it can be subdivided into 100 million Satoshis.

Similarly, other cryptocurrencies, like Ethereum and Cardano, are divisible into more assets. Unlike El Salvador, Panama did not decree that businesses should accept bitcoin or any other cryptocurrency. Mandatory adoption of bitcoin rollout generated criticism as retailers and consumers were not comfortable being compelled to use bitcoin as a currency all of a sudden.

Ukraine

The Ukrainian Parliament voted almost unanimously to legalize and regulate cryptocurrency just a day after El Salvador’s official bitcoin adoption. While the new law does not make Bitcoin or other cryptocurrencies legal tender, it does empower the country to regulate them. This is with hopes of developing a new industry that will attract transparent investments and boost the country’s reputation as a high-tech state.

Before now, cryptocurrency in Ukraine was treated as illegal. Although residents could purchase and sell crypto, law authorities kept a watchful eye on organizations and exchanges dealing in it. Unlike El Salvador, Ukraine’s crypto law does not encourage the use of bitcoin as a payment method and does not put it on par with the hryvnia, the official currency.

As reported by the Kyiv Post, Ukraine intends to open the bitcoin market to investors and businesses by 2022. Some paramount state officials have been promoting their crypto credentials to Silicon Valley investors and VC firms.

Cuba

Cuba’s President, Miguel Diaz-Canel, indicated an interest in cryptocurrencies in May to aid the country’s struggling economy in the aftermath of the Covid-19 outbreak. In the Island nation, bitcoin and other cryptocurrencies are now legally recognized as a means of payment for commercial transactions.

The Banco Central de Cuba (BCC) approved Resolution 215 of 2021, which recognizes cryptocurrencies on September 15, 2021. A couple of days after El Salvador’s Bitcoin Law became effective. Despite authorizing cryptocurrency use in Cuba, the BCC still cautions of the possible risks of using cryptocurrencies. Notably, the monetary policy risks and financial stability threats.

The central bank also warned against unscrupulous actors exploiting the anonymity of crypto transactions for illegal purposes.

Is Global Adoption Possible?

El Salvador’s adoption of Bitcoin as a legal tender is presently a subject of many criticisms and challenges. The question now is if major world economies would follow suit. To be straightforward, the probability of this happening is close to 0.

Major world economies are unlikely to support a cryptocurrency like bitcoin because bitcoin is decentralized and cannot be controlled by a central bank. What more? The inventor of bitcoin is anonymous to date.

Nevertheless, central banks around the world are working to introduce their own digital currencies – Central Bank Digital Currencies (CBDCs). Hence combining the advantages of digital with traditional money.

The CBDC Alternative

PwC, a financial consulting firm, published a report on CBDCs and according to the report, 60 governments are already working on one. Interestingly, 88 percent are built on bitcoin’s blockchain technology.

The Bahamas launched a CBDC – cryptocurrency version of the Bahamian dollar – in 2020 to avoid transporting cash between its 700 small islands. Also, Cambodia introduced its own CBDC, the Bakong. China has been testing its e-CNY money and wants to use it extensively during the 2022 Winter Olympics. The US has two programs investigating a digital dollar, and the Bank of England is consulting banks, merchants, and the public on its own digital money project.

In Africa, the Central Bank of Nigeria – the continent’s most populous country – plans to begin the trial phase of its CBDC in October 2021. This digital currency known as the e-Naira is expected to compete with cryptos like bitcoin.

Bottom Line

The handwriting on the wall is easy to read. If major economies are launching digital currencies to compete with bitcoin, they’re certainly not going to adopt the cryptocurrency like El Salvador.

Bitcoin Eyes The $40k Level As Bearish Sentiment Thickens

The cryptocurrency market has been in a bearish trend since the start of the week and looks set for further losses before the end of the week.

Bitcoin Drops To The $42k Level

The crypto market has been underperforming over the past few days, with the prices of most coins down by more than 10% in the past week. The bearish sentiment in the market started last week and could extend for a while longer.

Bitcoin nearly touched the $50k mark two weeks ago. However, since then, the leading cryptocurrency has been struggling. BTC lost its support at the $45k level earlier this week, and it has dropped even lower.

Bitcoin is now down by nearly 3% over the past 24 hours and is trading just above $42k. With the current bearish sentiment in the market, Bitcoin could be looking to defend the major support level at $40k before the end of the week. BTC hasn’t traded below the $40k region since July. However, if the bears remain in control, then BTC could drop below that level in the coming days or weeks.

The massive decline in the price of Bitcoin and other cryptocurrencies has affected the broader crypto market. The total cryptocurrency market cap was close to $2.5 trillion two weeks ag0, at a time when Solana raced to a new all-time high above $200.

However, the total crypto market cap now stands at $1.8 trillion. The decline comes after it started the week above $2 trillion.

BTC/USD chart. Source: FXEPMIRE

ETH, SOL, ADA And Others Are Also Down

The poor performance in the cryptocurrency market extended to the other major coins. Ether has lost more than 14% of its value in the past week and has lost the support above $3,000. It is now trading just above the $2,900 mark.

Cardano is also in the bearish territory despite launching smart contract features on its blockchain a few weeks ago. ADA has been down by 12% in the past week and is now trading at $2.11 per coin. Solana was one of the best-performing coins in recent months. After reaching a high above $200, SOL has lost more than 18% of its value in the past week and is now trading around $130.

Bitcoin Price Prediction – Bulls Need to Revisit $43,000 or Face another Sell-off

Following a broadly bearish session on Tuesday, it’s been a broadly bullish morning for Bitcoin and the broader market.

At the time of writing, Bitcoin, BTC to USD, was up by 3.91% to $42,340.0.

A mixed start to the day saw Bitcoin fall to an early morning low $40,601.0 before finding support.

Steering clear of the first major support level at $39,076, Bitcoin rose to a late morning high $42,744.0.

In spite of the recovery, Bitcoin fell well short of the first major resistance level at $43,023.

BTCUSD 220921 Hourly Chart

The Rest of the Pack

It has also been a mixed morning for the broader crypto market.

Through the morning, Crypto.com Coin was down by 4.49% to buck the morning trend.

It’s been a relatively bullish morning for the rest of the majors, however.

At the time of writing, Cardano’s ADA and Ripple’s XRP were up by 7.83% and by 7.72% to lead the way.

Binance Coin (+5.39%), Bitcoin Cash SV (+3.70%), Chainlink (6.93%), Ethereum (+6.28%), Litecoin (+4.24%), Polkadot (+4.57%) also found strong support.

Through the early hours, the crypto total market cap fell to an early morning low $1,809bn before rising to a high $1,908bn. At the time of writing, the total market cap stood at $1,899bn.

Bitcoin’s dominance rose to an early morning high 42.59% before falling to a low 42.03%. At the time of writing, Bitcoin’s dominance stood at 42.02%.

For the Afternoon Ahead

Bitcoin would need to avoid a fall back through the 38.2% FIB of $41,592 and the $41,350 pivot to bring the first major resistance level at $43,022 into play.

Support from the broader market will be needed, however, for Bitcoin to break out from the morning high $42,744.0.

Barring a broad-based crypto rebound, the first major resistance level would likely cap any upside.

In the event of an extended rally through the afternoon, Bitcoin could test resistance at $45,000 before any pullback. The second major resistance level sits at $45,297.

A fall back through the 38.2% FIB of $41,592 and the $41,350 pivot would bring the first major support level at $39,076 into play.

Barring an extended sell-off through the afternoon, however, Bitcoin should avoid sub-$39,000 support levels. The second major support level sits at $37,403.

Looking beyond the support and resistance levels, we saw the 50 EMA pullback from the 100 and the 200 EMAs through the morning.

We also saw the 100 EMA pullback from the 200 EMA, also a bearish signal.

Through the 2nd half of the day, a flattening of the 50 EMA on the 100 and 200 EMAs would provide support.

Key through the late morning and early afternoon would be to avoid a fall back through the day’s pivot to $41,350 to support Bitcoin and the broader market.

Shiba Inu Tries To Settle Above $0.000007 As Bitcoin Rebounds

Shiba Inu Rebounds After Sell-Off

Shiba Inu is trying to settle back above $0.000007 while Bitcoin is testing the resistance level at $42,600.

The world’s leading cryptocurrency has recently made an attempt to settle below the psychologically important support level at $40,000 but lost momentum and moved back to the resistance at $42,600. In case the test of the resistance at $42,600 is successful, Bitcoin will head towards the next resistance at $44,000 which will be bullish for the whole crypto market, including Shiba Inu.

Other cryptocurrencies are also gaining ground today. Ethereum is trying to get to the test of the resistance level at $3,000. Dogecoin has recently managed to get back above $0.21 while XRP is trying to settle above the resistance at $0.95.

Technical Analysis

shiba inu september 22 2021

Shiba Inu is currently testing the resistance level at $0.000007. In case this test is successful, it will head towards the next resistance which is located at the 50 EMA at $0.0000073. The 20 EMA is located at the same level, so Shiba Inu will likely face significant resistance near $0.0000073.

If Shiba Inu manages to settle above the 50 EMA, it will gain additional upside momentum and head towards the next resistance level at $0.00000745. A move above this level will open the way to the test of the resistance at $0.0000077. A successful test of the resistance at $0.0000077 will open the way to the test of the next resistance which is located at $0.000008.

On the support side, a move below $0.000007 will push Shiba Inu towards the support at $0.0000067. RSI remains in the moderate territory, and there is plenty of room to gain downside momentum in case the right catalysts emerge.

In case Shiba Inu manages to settle below the support at $0.0000067, it will move towards the next support level at $0.0000065. A move below this level will push Shiba Inu towards the support level which is located at $0.0000063.

For a look at all of today’s economic events, check out our economic calendar.

Bitcoin Retrace: Focus On Levels, Not Hype.

If you want to be prepared for the next quality opportunity, and make better decisions, it would serve you well to stop listening to people, and start focusing on what the market is saying: the price action around particular support levels.

I have been pointing out the 44K and 41K support levels for weeks while everyone was hyping about “alt season”. It’s not about knowing “when” the market will reach a level, it is all about being prepared IF it reaches a level. 44K was showing some support and has been compromised which brings us to the 41K AREA.

Levels by themselves are highly random and require further evaluation before taking any action. With a lower high established off of the 48K area, structure favors a lower low which can lead to a retest of the 37K support over the next few days. Even in the face of the “bear” market as hyped by your favorite fake gurus, I am interested in a swing trade long.

Stepping in front of bearish momentum is a high risk thing to do so instead, I want to see price stability develop first in the form of a double bottom formation, a higher low etc. A single candle reversal is not enough when the broader structure is not favorable.

Keep in mind this type of stability can take a few days or even a week to unfold. Patience, sticking to your rules and not reacting to the obvious is key in these situations. The broader trend is still bullish, while the shorter term structure is still in a larger consolidation. This is NOT a bear market yet.

If you would like to know more about how my long only swing trade strategy works, visit.