Home Daily Analysis Crypto Market sentiment Daily Crypto Brief, July 18 – Calm After the Storm

Daily Crypto Brief, July 18 – Calm After the Storm

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Yesterday was the second day of Facebook’s Libra hearings; this time was the turn of the congress. The day started with losses and then the mood of the investors shifted, and a comeback started.

Bitcoin has gained 3.88% over the last 24 hours, Litecoin(15%)  XRP(5.82%), Bitcoin SV (14.2), Tron(10.6%), Cardano(10.4%), being Nano (28.4) the star of the day. The current market cap is 269 billion, up 5.2% from 255,5 billion.

What’s Happening?

Yesterday, during the second day of the Libra hearings, David Marcus continued defending Libra as an electronic currency for the unbanked people. He continued to state that Libra’s decentralisation does not mean they wouldn’t enforce KYC AML CFT standards, stating that blockchain gives more information than the current system to law enforcement.

Several Representatives manifested their scepticism about Facebook doing things right this time.

Rep. Maxine Waters said Facebook ” “Demonstrated pattern of failing to keep consumer data private on a scale similar to Equifax.”

Congressman Patrick McHenry said, “Change is here, Facebook’s entry in this world is just confirmation—albeit at scale.”

“The world that Satoshi Nakamoto, author of the Bitcoin white paper, envisioned is an unstoppable force. We should not attempt to deter this innovation. And those that have tried have already failed.”

“Some of us want to live in permissioned society, where you have to come to the government and for its blessing before you even think about innovating, Others believe in innovation.”

source: decrypt.co

Rep Patrick McHenry said

”We’re here to go beyond the headlines… Washington must go beyond the hype to ensure that we are not the place where innovation goes to die.”

Later, answering why they registered the Libra Association in Switzerland, David Marcus said

The choice of Switzerland has nothing to do about evading responsibilities or oversight. The goal of Switzerland is to home this Libra in an international place

Rep. Nydia Velasquez asked if thy were committing themselves not to launch before all concerns from the FED and regulators were addressed. Mr Marcus said

Absolutely Congresswoman and I want to reiterate this commitment that this was the spirit in which we announced early

Rep David Scott questioned him about the details on how they were going to implement and enforce the Know Your Customer protections and ensure the safety of the financial system.

Marcus:

“[Libra] will have an AML program and will have guidelines for all the members to enforce the AML, KYC, CFT standards.

Blockchain gives additional information to law enforcement and regulators compared to our current system.”

Regarding how they will anticipate and react to criminal uses of the Libra network, Marcus said

I believe that we can improve on the current system because we have a chance this time around to think through how the network is designed, the way that the on and off ramps are properly regulated with proper KYC controls, the proper way to monitor new activity and report it with new technologies and I think this system might be potentially better on these fronts.”

Rep Duffy asked, “Who gets to use Calibra and Libra?” Marcus answered that anyone that can open an account, goes through KYC, and is in a country where Libra can operate. Then, Rep Duffy replied:

Who can use a $20 bill?  […] a gun dealer who can use a $20 bill because, you know, it is a lawfull gun […] On Facebook you don’t allow gun dealers, so can a gun dealer use Libra?

This $20 bill doesn’t discriminate on anything you can be a murderer say horrible things, you can say great things. This $20 bill can be used by every single person that possesses it.

Source: Youtube

The complete hearings are here.

 

Technical Analysis

 

Bitcoin



As we expected yesterday, Bitcoin moved up to test the $8,950-$10,000 area. Volume has been decreasing as the price moved up. The MACD had a crossover transition to a bullish phase while the CCI is neutral.  The Price still is inside the descending channel. Today, we have to observe the $10,000 level and see if BTC breaks above it convincingly. Also, if there is a 4H close below $9,570, the price could continue downwards, to test the $8,900 level.

Ripple



Yesterday, XRP made a nice bounce candle that stopped its negative progression. The CCI is in positive territory, and the MACD is slightly positive also. We see the price moving in a band between 0.324 and 0.295.  The price has crossed the steeper descending trendline. To take long positions, we need the 4H price to cross the 0.324 level. If the price breaks the 0.295 support, it will be considered very negative for the coin, although the odds of that happening is currently small.

Ethereum



ETHUSD yesterday and during the early morning, today has retraced most of the losses experienced two days ago. The $195 level was a good demand level that drove the price back up, and the $200 key level was recovered.  Now the price touched the $222 resistance and backed from there. ETH still respects the descending channel, but the indicators still point to more price advances. To be safe, I’d require a close above $222 level to take long positions.

Litecoin



LTCUSD daily chart shows an engulfing candle which on the 4H chart shown here is seen as to opposing long candlesticks. All indicators are bullish, and also the volume of the upward move corroborates the idea that the LTCUSD will continue moving up. A price above $94 could be a good entry point. If the price moves below $85 invalidate this view.

Binance Coin



Binance Coin has also made a good reversal signal that may signify further upward movements. The MACD changed to bullish, and the CCI is also pointing to bullish.  The issue is this that the prevailing trend is still bearish on the daily chart, and will encounter resistance between $29 and $30 levels.  A break above $30 would be a better place to go long on this one.

 

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