Bitcoin Weekly Update – 19/07/2019
Bitcoin, which has been gradually declining for several days, experienced a strong upturn on Thursday, July 18. Indeed, it went from $9400 to $10700 in a few minutes, some people think it was “THE” dip and that we will now see a parabolic increase for Bitcoin. At this moment, we do not consider this to be an unconditional signal for a recovery of a bullish trend with a new ATH in the coming days. To see this, we would need confirmation of several price zones that we will present you.
The Bitcoin is currently in a large descending channel. Thus, an ascent to the resistance zone of this channel is quite possible. A break of this resistance in daily with a high volume would be a sign more than bullish.
The short-term resistance zone is $10,800. As long as we' re underneath, the bears have the upper hand in the market. A return to $9000 is thus still possible with why not a spike at around $8500 which corresponds to a GAP of future CMEs not filled.
From a technical point of view we remain bear but from a fundamental point of view – the Bitcoin is bullish! Indeed, we can see that the sudden increase of Bitcoin followed the gold bull run in the traditional markets. Investors fear a major economic crisis in the near future and therefore probably want to take refuge in “solid” stocks such as gold and gold 2.0: Bitcoin? To be continued.
>> Libra update :
Libra Hearings, David Marcus, the CEO of Facebook’s subsidiary Calibra, reiterated his promise that Libra would not launch until regulators’ concerns were fully addressed. But he stopped short of committing to freezing technical work on the project, much to the chagrin of House Financial Services Committee members.
>> France to approve ICO :
According to Reuters, France is about to issue the new rules for crypto-related firms allowing them to issue ICO. The rules will require crypto firms to comply with standards on capital requirements, consumer protection and tax. Additionally, the executive director for legal affairs of the Financial Market Authority said that the authority was talking with several candidates for ICO and various crypto exchanges, custodians and fund managers.
>> Chinese court rules in favor of Bitcoin :
A court in Hangzhou, China, upheld Bitcoin’s status as “virtual property.” The ruling reaffirms that Bitcoin is legal to own in China and indicates to holders that they will be protected by the country’s legal system in disputes. “Bitcoin holds the attributes of property. It’s valuable, scarce, and disposable. Therefore, we should recognize it as virtual property according to the “General Civil Law.” Virtual property is legally protected by the laws of the People’s Republic of China”.
>> U.S. Regulator Investigating BitMEX :
United States regulator the Commodity Futures Trading Commission (CFTC) is reportedly investigating derivatives giant BitMEX. According to sources from Bloomberg, the CFTC suspects that BitMEX, which is registered in the Seychelles, allowed U.S. residents to use its platform to trade. This news impacted the price of Bitcoin by a rapid drop of 5%