Daily Archives: April 13, 2022

Bitcoin is consolidating above the $39,250 support zone against the US Dollar. BTC could recover if it manages to clear the $40,250 resistance zone.

• Bitcoin retested the $39,250 support zone and found a strong buying interest.
• The price is still trading below $41,000 and the 100 hourly simple moving average.
• There is a connecting bearish trend line forming with resistance near $40,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a short-term recovery if there is a move above $40,250.

Bitcoin Price Remains Supported

Bitcoin price attempted an upside correction above the $40,000 level. BTC climbed above the $40,400 level, but the bears remained active.

It seems like the price struggled to stay above the 23.6% Fib retracement level of the key decline from the $43,416 swing high from the $39,240 low. A high was formed near $40,800 and the price started another decline. There was a break below the $40,000 level, but the bulls again defended the $39,250 zone.

It is now consolidating near the $40,000 level, but it is well below the 100 hourly simple moving average. An immediate resistance on the upside is near the $40,250 level. There is also a connecting bearish trend line forming with resistance near $40,250 on the hourly chart of the BTC/USD pair.

A clear move above the trend line could send the price towards $40,800. The next resistance could be near $41,250. It is close to the 50% Fib retracement level of the key decline from the $43,416 swing high from the $39,240 low.

Source: BTCUSD on TradingView.com

If the bulls able to clear the $41,250 and $41,350 resistance levels, the price could accelerate higher. In the stated case, the price may perhaps rise towards the $41,800 resistance zone or the 100 hourly simple moving average.

Another Decline in BTC?

If bitcoin fails to clear the $40,250 resistance zone, it could continue to move down. An immediate support on the downside is near the $39,600 level.

The next major support is seen near the $39,250 level. A downside break below the $39,250 support zone could accelerate losses. In the stated case, the price could decline towards the $38,500 level or even $38,000.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just above the 50 level.

Major Support Levels – $39,600, followed by $39,250.

Major Resistance Levels – $40,250, $41,250 and $41,800.

The China Banking Association, the China Internet Finance Association and the Securities Association of China issued a joint statement warning the public about the “hidden risks” of investing in nonfungible tokens, or NFTs.

In a Wednesday notice, the three associations launched initiatives aimed at encouraging innovation in the crypto and blockchain space focused on NFTs as well as “resolutely curb[ing] the tendency of NFT financialization and securitization” to reduce the risks around illicit activities. The China Banking Association said member institutions should not consider NFTs assets like securities, precious metals, and other financial products.

In addition, cryptocurrencies including Bitcoin (BTC), Ether (ETH) and Tether (USDT) should not be used for the pricing and settlement of NFT transactions, platforms should perform real-name authentication and follow Anti-Money Laundering requirements, and associations and firms in compliance should not invest in NFTs or provide financial support to others for doing so. Other measures in the proposed code of conduct included not providing centralized transactions and not weakening the tokens’ nonfungibility “by dividing ownership or batch creation, and carrying out token issuance financing in disguise.”

“We solemnly call on consumers to establish correct consumption concepts, enhance their awareness of self-protection, consciously resist NFT speculation and speculation, be vigilant and stay away from NFT-related illegal financial activities, and effectively safeguard their own property safety,” said the associations. “If relevant illegal activities are found, they should be reported to the relevant departments in a timely manner.”

The associations proposed:
– NFTs shouldn’t represent financial assets like bonds, insurance, or precious metals
– NFTs shouldn’t be used to facilitate #ICOs
– members of the associations shouldn’t provide centralized exchanges for NFTs
– NFTs cannot be transacted in crypto…

— China Boring Tech (@ChinaBoringTech) April 13, 2022

China-based regulatory associations have previously issued warnings to the public about investments in cryptocurrencies while also calling on member institutions to abide by existing regulatory provisions regarding digital assets. The country officially banned crypto exchanges from providing services in 2017, but many individuals were able to use local bank accounts for crypto-related transactions before the People’s Bank of China started cracking down on the activity in 2021.

Related: China’s share in Bitcoin transactions declined 80% post crackdown: PBoC

Some of China’s social media websites, including WeChat, have removed NFT platforms in 2022 seemingly in anticipation of a government crackdown. However, Chinese multinational e-commerce firm Alibaba Group — one of the largest companies in the world with a $272 billion market capitalization, launched an NFT marketplace in August 2021 that allows users to sell tokens representing licenses to copyrights.