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Spanish lawmakers get cryptocurrency in a bid to promote industry

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Members of Spain’s lower house of Congress saw a surprise in their inboxes, the equivalent of 1 euro in crypto.

As reported by Spanish news outfit ABC, the plan is spearheaded by Tutellus, a decentralized platform looking to tokenize education technology, and the Blockchain Observatory. The project aims to promote the use of cryptocurrencies in the country. 

All 350 members of Spain’s lower house, or the Congress of Deputies, received the equivalent of 1 euro in cryptocurrency in their emails. Miguel Caballero, Tutellus founder, said the goal is to raise awareness about the future role of cryptocurrencies in society:

“We have explained to your honorable members that we are in a time of profound change in the use of money, in addition to highlighting the important role that cryptocurrencies have today.”

Caballero said the cryptocurrency “is not a donation” and acknowledged that some congress members might be more familiar with crypto. But for those who no experience with cryptocurrencies yet, Caballero said, this is an opportunity to learn more. 

Spain is not the first country to send cryptocurrencies to lawmakers. The political action committee (PAC) of the Chamber of Digital Commerce sent $50 worth of Bitcoin to all 541 members of Congress in early October, reported Decrypt. 

Spanish banks have been more interested in cryptocurrencies and blockchain in the past few years. Santander partnered with Ripple for a blockchain-based payments platform while the Banco Bilbao Vizcaya Argentaria (BBVA) launched a study to explore zero-knowledge proofs and other cryptographic techniques. 

The European Central Bank also announced it would look into a digital euro by 2021 and released a report diving into its possible impact on the retail market.



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One More Crash Required Before Bitcoin Hits $20K: Analyst

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Bitcoin remains at risk of crashing below $10,000 even as its long-term fundamentals look incredibly bullish.

The benchmark cryptocurrency could fall into the $8,000-8,500 area, according to a trade setup presented by a TradingView-based analyst. It showed BTC/USD in a “breakout zone” above historically relevant trendline resistance, now approaching a sell-off area defined by the $12-000-14,000 range.

Bitcoin faces high selling pressure near $14K. Source: BTCUSD on TradingView.com

The $12,000-14,000 area comes with a historical significance as resistance. It, on more than eight occasions, has capped BTC/USD from extending its upside momentum. Bulls turn cautious around it, leading to a drop in new long positions. That, in turn, paves the way for bears to increase short entries.

The upper green bar in the chart above shows higher bearish sentiment around the area.

Bitcoin, therefore, could stretch its upside momentum up until $14,000. Nevertheless, its rally may follow a sharp correction to the downside. Should that happen, the TradingView.com analyst sees the price crashing towards the lower $8,000s.

And he offered more than one technical outlook to explain his bearish bias.

Bearish BAT Formation

The analyst referred to one of his recent outlooks on Bitcoin, reiterating the same bearish correction towards $8Ks but based on a different technical pattern: BAT.

It is a classic retracement and continuation structure that occurs when a trend tentatively reverses its direction and continues on its original course. With that said, BTC/USD could continue trading towards the $12-14K area but would remain at risk of correcting lower below $10,000.

bitcoin, btcusd, btcusdt, xbtusd, cryptocurrency

Bitcoin price outlook, as presented by Weslad. Source: BTCUSD on TradingView.com

“If you could recall my last analysis which proposed immediate test on 12k zone after discovering potential BAT formation on BTC. This view remains very valid and we can count on it and wait for a possible retracement after the BAT target is achieved.”

Bitcoin at $20K

The analyst further added that a pullback towards $8,000 would bring ideal opportunities for investors with a long-term market outlook.

His chart envisioned a sharp rebound towards $20,000 as Bitcoin hit $8,000.

The prediction fell in line with what other fundamental analysts say about the cryptocurrency: That it would grow higher in the coming quarters as more and more investors pick it as their safe-haven against the Federal Reserve’s dovish policies.

The US central bank has vowed to keep interest rates near zero until 2023. It has also committed to purchase unlimited corporate and US government bonds. The policy risks sending yields on the long-term Treasuries below zero, making it unattractive for investors to hold bonds altogether.

Meanwhile, continuous injection of US dollars into the economy robs the greenback of its appeal of a global safe-haven. The same narrative also intends to help push Bitcoin higher because of its underlying scarcity as an asset.



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Bitcoin Breaks $11.8K on Jerome Powell Speech; Is Rally Sustainable?

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A Jerome Powell speech on central bank digital currencies (CBDC) was enough to decouple Bitcoin from traditional asset markets.

The benchmark cryptocurrency surged above $11,800 in the hours leading up to the Federal Reserve chairman’s cautious remarks on CBDCs at a panel organized by the International Monetary Fund. At 0900 ET Monday, BTC/USD underwent a speculative jump from $11,523 to $11,650. One hour later, when Mr. Powell started his speech, the pair rested.

The next hour, however, it resumed its short-term uptrend by adding another $150 to it. Around noon ET, Bitcoin had established an intraday high at $11,833.

Bitcoin rallied ahead and around Mr. Powell’s speech on Monday. Source: BTCUSD on TradingView.com

It was a standalone act. None of the indexes that formed a positive correlation with Bitcoin matches its ascent in early Monday hours. The S&P 500, for instance, jumped 0.90 percent after the New York opening bell but later pared all those gains to close 1.63 percent lower.

Bitcoin’s daily candle, on the other hand, logged a 2.14 percent intraday return.

Xi Jinping Vibes

The uptick in BTC/USD on Monday served as a reminiscent of a short-term upward trend in October 2019. Only that time, traders raised their bids for the pair after Xi Jinping, China’s premier, endorsed blockchain – Bitcoin’s underlying technology – in a public event.

bitcoin, btcusd, btcusdt, xbtusd

Bitcoin jumped by more than $3,000 after Mr. Jinping’s pro-blockchain statements. Source: BTCUSD on TradingView.com

BTC/USD climbed by more than 40 percent – from $7,430 to as much as $10,540 – before succumbing to a strong selling wave that followed later. The pair crashed by more than 39 percent when the China hype faded.

An imminent correction was a word of caution among many traders as they addressed the Bitcoin rally’s size and pace. A pseudonymous one said that he’d be cautiously waiting for the crypto to hold above $11,660 before opening any new bullish positions.

“If I lose [the support], [then] I’ll be looking to short down to 11.2k,” he added.

Ivan Liljeqvist, a Sweden-based market analyst, ran a poll to understand the consensus behind the next Bitcoin move. The results came mixed, with 47.7 percent voting in favor of correction towards $11,000.

What’s Next for Bitcoin

In the short-term, Bitcoin expects to retain its positive correlation with the US stock market. The cryptocurrency’s direct relationship with the S&P 500 has been erratic, as shown in the Skew chart below. It rises and falls consecutively, but remain intact on a medium-term outlook.

bitcoin, btcusd, btcusdt, xbtusd

Bitcoin-S&P 500 correlation expects to bounce back. Source: Skew

The reason is that every market is waiting for the second coronavirus stimulus package. Once the negotiations settle – macro analysts expect a deal by the November 3 presidential election – all the riskier assets would likely surge in tandem.

Bitcoin also anticipates reaching a new yearly high as the stimulus reduces the bids for the US dollar – and even as it gives the Fed adequate tools to continue its near-zero lending rate and its infinite bond-buying program.





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Bitcoin Shatters Key Resistance as Bulls Attempt to Take Out “Pivotal Level”

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  • Bitcoin saw a strong upsurge this morning that allowed it to break above its $11,600 resistance level
  • This resistance has been suppressing its price action throughout the past few days and weeks, with bulls being unable to spark any sustainable moves above it
  • Where it trends next will likely depend on how sustainable this ongoing move higher is, and whether or not it can lead it to a key resistance
  • One trader is now watching for a test of $11,900. He notes that this is a pivotal level that, if broken, could spark a massive uptrend

Bitcoin and the entire crypto market have been caught in the throes of a consolidation phase throughout the past few weeks.

This is rapidly coming to an end, however, as bulls are now attempting to gain control of its near-term price action.

Earlier this morning, BTC saw a sudden bout of buying pressure that sent it surging over $11,600 – which has long been a strong resistance level.

If it takes this level out and holds above it for a sustained period, it could see a further influx of buying pressure that allows it to break $12,000.

One analyst is now noting that $11,900 is the pivotal level he is now watching, as its reaction here could set the tone for the days and weeks ahead.

Bitcoin Rallies Past Key Resistance as Bulls Move to End Consolidation Phase 

At the time of writing, Bitcoin is trading up just over 1% at its current price of $11,650. This is around the price at which it has been facing immense selling pressure throughout the past few weeks.

This move higher is quite surprising, as most investors expected either further consolidation or further weakness until after the election.

It is imperative that Bitcoin stabilizes above this level, or else a sharp downside movement could be imminent.

Analyst: $11,900 is the Pivotal Level to Watch in the Near-Term 

While speaking about this latest breakout, one analyst explained that $11,900 is the next key level to watch.

He notes that a break above this level would mark a fundamental trend shift that boosts its price in the days and weeks ahead.

“BTC: Bitcoin was able to hold $11,300 and breaking to the upside here to potentially form higher-lows and highs. $11,900 level remains pivotal on the weekly chart. A break and close above this level would signal new weekly highs that we haven’t seen since Jan. 2018 = bullish,” he said.

Image Courtesy of Josh Rager. Source: BTCUSD on TradingView.

The coming few hours should provide investors with significant insight into the longevity and significance of this ongoing upswing.

Featured image from Unsplash.
Charts from TradingView.





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