Bitcoin’s price hike to $12,000 won’t make sense until the bulls manage to turn this level into support

The price of Bitcoin is once again approaching USD 12,000, but this level can cause more damage than good if the bulls fail to convert it into support.

On Tuesday, Bitcoin (BTC) bulls gathered enough strength to push the BTC price slightly above the $12,000 mark, a level not seen since September 1st.
Snapshot of the daily performance of the crypto market. Source: Coin360

The move came after Monday’s large volume increase (October 19) to USD 11,822 was followed by continuous buying through Tuesday, which provided enough momentum for the bulls to push the price above the up channel to USD 12,038.

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Bitcoin futures volume per exchange. Source: Digital Assets Data

The rise to $12,000 was also accompanied by increasing volumes on Bitcoin Bonanza major futures exchanges from Monday through Tuesday, and earlier this week Cointelegraph reported that the latest CME traders‘ commitment report shows that institutional long positions reached a record high.

Google Finance gives importance to Bitcoin next to fiat currencies

Earlier this week, traditional markets took a hit, as investors feared that a stalemate between Democratic and Republican lawmakers in Congress would prevent the passage of a second round of economic stimulus aimed at easing financial pressure on small businesses and Americans in need of a second stimulus check.

Fortunately, by market close today (Tuesday, October 20), the Dow, S&P 500 and Nasdaq closed the day with marginal gains.

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In particular, the Dow closed 100 points higher after U.S. House Speaker Nancy Pelosi said she felt „optimistic“ about the deal reached between Congress and the White House.

The recent price action of Bitcoin has been slightly detached from the stock markets, leading some analysts on Twitter to call again for a „decoupling“, but all this seems a bit premature.
Bitcoin price vs. the S&P 500 (3 months)

Regardless of the position you take regarding the decoupling of Bitcoin’s price from the traditional markets, the digital asset is still one of the best performers in 2020, currently with a 65.4% increase so far this year.

Macro Asset Performance in 2020.

Bitcoin bullishers must convert the $12,000 into support

Today’s daily high of USD 12,038 is only USD 10 from the previous high recorded on September 1st, when the Bitcoin price formed a tweezers ceiling and corrected by 18.5% during the following days. So, naturally, traders have expressed mixed feelings about the price hovering around USD 12,000 again, especially considering that the last 5 visits to this resistance were followed by massive sales.

Bitcoin price is approaching USD 12,000 and could be the signal for the beginning of a new bullish cycle

As far as the price action is concerned, when the trend line of an upstream channel breaks near a key resistance level, it is normal for traders to pull back their profits, and this usually results in the price falling to retest the upstream channel trend line or a previous resistance such as USD 11,900 to determine if buyers are still optimistic enough to confirm the level as support.
BTC/USDT 4 hour chart.

In the 4 hour time frame, we can see that this is what happened when the price fell to USD 11,850 while investors were withdrawing their profits.

At the time of writing, Bitcoin is trading around USD 11,940 and with less than 2 hours until the daily close, an effort to close the day at USD 12,000 would be a positive sign.

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Given the recent importance of the USD 12,000 level, multiple failed attempts to overcome the resistance or a clear loss of momentum could motivate bearish traders to open short positions from USD 11,900 to USD 12,000. This would increase the possibility of a repeat of the massive sell-offs previously seen at the USD 12,000 level.

 

Bullish outlook: How DeFi and decentralized exchanges could continue to grow

Decentralized Finance (DeFi) has seen parabolic growth since early 2020, with the total value set in these largely Ethereum- based contracts rising from $ 1 billion to now $ 12 billion.

Decentralized stock exchanges (dexs) were decisive for this growth

In 2017 and 2018, many thought these apps were clunky due to the high transaction fees and the very slow and confusing user experience.

However, with the introduction of Bitcoin Profit and other decentralized exchanges, things began to change. At several points over the past summer, the volume and liquidity of the decentralized exchanges exceeded the volume and liquidity of top exchanges like Coinbase.

But this growth may not stop there. Top analysts in the industry assume that the Ethereum -Dexe will rise even further in the coming weeks and years.

This is likely to lead to a rally across the DeFi area and likely at ETH itself, which will benefit from this influx of interest in decentralized settlement.

According to analysts, decentralized stock exchanges will grow even faster

Crypto asset analyst Qiao Wang believes two fundamental trends will get the decentralized exchanges going in the coming months and year.

Initially, after months and years of development, the Ethereum solutions of layers 1 and 2 are used. It is believed that Optimistic Ethereum will be introduced, which will enable DeFi transactions on a more private, cheaper and more powerful second layer.

Other companies like Starkware and Matter Labs are also working on promising scaling solutions that should lead to a better user experience.

Second reason Dexs might take off: There have been a number of issues with centralized exchanges lately.

Bithumb was searched. KuCoin has been hacked. Recently, BitMEX was charged with derivatives and money laundering violations by the US CFTC, while OKEx suddenly stopped withdrawals because a private key holder of the organization went offline.

“It can hardly be stressed enough how important it is that 1) Ethereum L2s and scalable L1s go online and 2) what has happened to Kucoin / Bitmex / Okex in the last 2 weeks. The timing couldn’t be better so that the decentralized futures / swap exchanges finally take off in 2021. „

Uniswap could take the lead in this new era of Dexs with the introduction of the third iteration of the protocol, „v3“.

It is expected that the team behind the protocol will bring out a revamped exchange that will greatly improve the usability. The company recently announced that it would have a $ 11 million Series A round in August under the direction of Andreessen Horowitz with additional investments from USV, Paradigm, Version One, Variant, Parafi Capital, SV Angel and A.Capital “Performed for this upgrade.

6 personer siktet av amerikansk justisdepartement med hvitvasking av millioner dollar av meksikanske narkotikapartner ved hjelp av kryptovaluta

Seks personer er tiltalt av USAs justisdepartement (DoJ) for angivelig å ha deltatt i en hvitvaskingsring ved hjelp av kryptovaluta.

De påståtte dårlige skuespillerne er alle kinesiske statsborgere som inkluderer Jiayu Chen, 46, Jianxing Chen, 40, Tao Liu, 45, Xizhi Li, 45, Jingyuan Li, 47, og Eric Yong Woo, 43

I følge rettsdokumenter som ikke ble forseglet 15. oktober i den amerikanske østlige tingretten i Virginia, var de seks individene en del av en kriminell gruppe som trakk millioner av dollar som tilhørte meksikanske narkotikakarteller (inkludert det beryktede Sinaloa-kartellet) ved hjelp av kryptovaluta og kasinoer.

Ifølge justisdepartementet er de seks blitt rammet av anklager knyttet til sammensvergelse for å hvitvaskere ulovlige penger og sammensvergelse om å distribuere kokain. En av personene, Tao Liu, er også siktet for forsøk på å bestikke en hemmelig politimann for å skape falske pass for flere personer. Anklagene kommer etter en fire års etterforskning av narkotikahandel og asiatiske hvitvaskingsordninger i USA og over hele verden, sa justisdepartementet i en pressemelding .

I et forsøk på å holde seg i kommunikasjon og planlegge ulovlige aktiviteter, brukte sammensvorne krypterte sosiale medieplattformer som The News Spy og WeChat. Det antas at de seks kriminelle har samlet rundt 30 millioner dollar fra hvitvaskingsordningen, heter det i tiltalen.

Fem av de mistenkte er allerede pågrepet, mens Jianxing Chen fortsatt er på frifot

Spesialagent med ansvar for US Drug Enforcement Administration (DEA) Special Operations Division, Wendy Woolcock sa:

“Disse personene gikk langt for å skjule sin påståtte kriminelle virksomhet og ytterligere ordninger som gjorde det mulig for narkotikakarteller å skyve giftet mot samfunnene våre og vaske deres ulovlige inntekt. Til tross for denne innsatsen kunne de ikke unndra seg deteksjon av amerikansk politi. DEA vil sammen med våre partnere fortsette å arrestere og stille for retten transnasjonale kriminelle som disse, som legger til rette for og tjener på den onde globale narkotikahandel. “

De seks mistenkte utsettes for en minstestraf på 10 år i fengsel med mulighet for livsvarig fengsel.

$ 420 millioner i Bitcoin flykter fra BitMEX etter føderale kostnader

Bitcoin fortsetter å strømme ut av den Seychellene-baserte kryptokursutvekslingen BitMEX når selskapet lover å bekjempe påstandene om hvitvasking.

Kort fortalt

• Bitcoin-handelsmenn fortsatte utstrømmene fra BitMEX fredag ​​ettermiddag.
• Forbundsmyndigheter anklaget BitMEX torsdag for ikke å ha gitt beskyttelser mot hvitvasking av penger og brudd på bankhemmelighetsloven.
• Selskapet har fortsatt med normal drift og har lovet å bekjempe anklagene.

Bitcoin-utvandringen fra BitMEX fortsatte fredag ​​ettermiddag da handelsmenn fortsatte å ta ut midler fra verdens femte største kryptoderivatutveksling. Tiltaket følger en rekke anklager som er anlagt mot firmaet av føderale påtalemyndigheter i New York.

Oppdaterte tall fra analyseselskapet Glassnode viser at handelsmenn har trukket nesten dobbelt så mye som Decrypt rapportert tidligere i morges, til sammen nesten 40 000 BTC siden saken ble kunngjort torsdag. Det er rundt $ 420 millioner dollar i Bitcoin til dagens priser.

Glassnode kunngjorde tidligere at rundt 23200 BTC, eller $ 243 millioner, ble trukket ut av BitMEX på en enkelt time, som dataselskapet kalte den største timestrømmen de har sett fra utvekslingen til dags dato.

Omtrent 170 000 i Bitcoin eller 1,8 milliarder dollar hadde blitt holdt i BitMex-lommebøkene, ifølge Glassnode.

Videre har åpne posisjoner på Bitcoin-futureskontrakter på BitMEX fått 20% hit, ifølge data fra analyseselskapet Skew, siden nyheten om tiltalen brøt.

Grunnleggerforfatteren Hayes, Benjamin Delo og Samuel Reed samt utøvende Gregory Dwyer ble tiltalt for anklager for brudd på bankhemmelighetsloven ved ikke å gjennomføre tilstrekkelige bestemmelser mot hvitvasking av penger. Reed ble arrestert i Massachusetts.

Føderale påtalemyndigheter på Manhattan anklaget torsdag BitMEX-ledere for å ha konspirert om å bryte bankhemmelighetsloven ved å unnlate å implementere et tilstrekkelig program for bekjempelse av hvitvasking.

Commodity Futures Trading Commission anklaget i en sivil klage at Hayes, Delo og Reed, samt fem enheter, drev BitMEX som en uregistrert handelsplattform, så vel som ikke klarte å gjennomføre prosedyrer for hvitvasking av penger.

BitMEX nektet anklagene i en bloggpost på torsdag og lovet å forsvare seg kraftig mot påstandene i retten.