The crypto markets are not faltering yet in their current rally, which has seen Bitcoin rise from around USD 6,500 just four days ago to a new weekly high so far today of USD 7,801 just minutes ago at 3:45 pm London time, just as North America takes over from Europe (CoinDesk).
Tether is the only coin showing losses in the Top 10 by market capitalization (Coinmarketcap), with EOS, Litecoin and Ethereum growing the quickest on the back of a Bitcoin resurgence.
One of the biggest pieces of news for positive sentiment comes in the form of a new draft law in Germany that might soon allow German banks to legally offer cryptocurrency to retail customers. First reported by local media agency Handelsblatt, the draft bill first needs to gain approval from all 16 states in the country, but after passing through the Bundestag federal parliament, there is little reason to doubt the law will be passed.
There is a clause for “separation” in the original draft of the bill that still required banks to turn towards external crypto custodians or dedicated subsidiaries, but observers will be happy to note that this clause has now been erased from the current draft bill. Handelsblatt sees this as the way forward for banks to streamline their crypto-related services:
“Starting in 2020, financial institutions will be able to offer their customers online banking, virtually at the touch of a button, along with classic securities such as stocks and bonds, as well as cryptocurrencies.”
German industry players have warmed up to this news. Distributed Ledger Consulting chief Sven Hildebrandt says:
“Germany is well on its way to becoming a crypto-heaven. The German legislator is playing a pioneering role in the regulation of cryptocurrency.”
The Association of German Banks, which represents over 200 financial institutions in the nation, has thrown its weight behind the bill, saying that supervised financial institutions have the years of experience and risk mechanisms in place to safeguard the assets of clients. Nevertheless, any optimism running high is understandable. The Bundestag passing the bill is a huge step forward for the parliament, especially since it had previously said that Bitcoin and crypto “are not real money” due to their high volatility and perceived limited utility in payments.
However the current outlook, technical analysis does seem to suggest a possible turning point after this weekend. One significant comment comes from a trader who actually predicted the fall of Bitcoin two weeks ago below USD 8,500. He turned out to be right, but now he is saying technical factors are forming enough confluence to suggest a bounce is coming in a fortnight.
$BTC is looking so Bearish… this is totally not a falling Wedge @ E wave @ Golden fib @ 50MA$BTC is definitely going to sub 1k now! it's over! No one expecting a bounce here, certainly not me! I'm short!
— 𝓥𝓮𝓵𝓿𝓮𝓽 📊丝绒 (@888Velvet) November 29, 2019
If he is correct, we could see Bitcoin experience another jump to top USD 8,600. The trader bases his prediction on a completion of a 5-phase wave pattern that bounced off our favorite technical: the 50-day moving average. In doing so, a huge falling wedge has formed, a sign that yet another bounce could happen in the following days and weeks.
Others aren’t as convinced, but some have noted that the past two days of trading has been following a pattern of downward consolidation, followed by upward breakout. Everything looks almost similar to the two days from 25 November, so there is some logic behind the second bounce.
Bitcoin's price is going down? Remember everyone, after the FUD, news trading and manipulation clears out, we still have a global movement that's going to change the world. We will see 10k btc again and welcome 100k. Crypto is unstoppable. Crypto is the future pic.twitter.com/9vlgH4S7u2
— Charles Hoskinson (@IOHK_Charles) November 22, 2019
Meanwhile, enjoy the post-Thanksgiving price run, and remember, not everybody was saying the bear market was here. Cardano’s creator Charles Hoskinson would have been very happy to remind people that just last week, he was the one who asked people to remember that once negativity clears, Bitcoin would still be the “global movement that’s going to change the world” and it was “unstoppable”. He said:
“Bitcoin’s price is going down? Remember everyone, after the FUD, news trading and manipulation clears out, we still have a global movement that’s going to change the world. We will see 10k btc again and welcome 100k. Crypto is unstoppable. Crypto is the future.”
Inspiration? You bet.
Image Courtesy: Pixabay