Cryptocurrency market bounced back on Tuesday as major cryptos in market posted gains on the day. However, Bitcoin and Ethereum were rejected by the 20-day moving average again. Both opened Wednesday negative.
SEC appoints a crypto watchdog director
The US Security Exchange Commission named Valerie A. Szczepanik as Senior Advisor for Digital Assets and Innovation, and as Associate Director in Division of Corporation Finance on Tuesday, according to a SEC press release.
Szczepanik has been called to coordinate all SEC procedures regarding crypto assets. The director will “coordinate efforts across all SEC divisions and offices regarding the application of U.S. securities laws to emerging digital asset technologies and innovations, including initial coin offerings (ICOs) and cryptocurrencies,” according to the press release.
In words of Szczepanik, her mission is “to facilitate capital formation, promote fair, orderly, and efficient markets, and protect investors, particularly Main Street investors.”
New York to create a pilot cryptocurrency program to buy local
Ron Kim, New York Assemblyman, has proposed the A11018 bill that relates to the use of cryptocurrencies to incentivize consumers to “buy local.”
The bill “relates to creating pilot programs to incentivize consumers to buy locally; up to ten pilot projects may be created in regions across the state that incorporate the principles of community currency or local community dollars,” according to the New York State memo.
The bill proposes that new local currencies, including cryptos, would be used as a form to create engagement between neighbors and community bonds to promote local businesses.
Assemblyman Kim stated that “every local dollar spent in a mom and pop store stimulates local job growth.” He resumed the bill in one sentence: “Community currencies are the next step in fostering regional economic growth and local civic participation.”
Bitcoin mining will use old Alcoa center in Upstate New York
Related or not with the last news, crypto mining company Coinmint announced that it would invest up to $700 million in an old Alcoa center located in the New York State frontier with Canada.
Coinmint is moving forward to create the biggest bitcoin mining center in the world with more than 150 jobs created in the next 18 months. The center was closed four years ago by Alcoa; it worked for aluminum smelting operation.
The agreement was signed on December 1, 2017; when Bitcoin was at 11,000 the piece, now each cryptocurrency costs 7,600. However, “as long as bitcoin network exists we anticipate mining to be profitable,” said Coinmint’s Chief Technology Office Prieur Leary. “We’ve developed a process to get an edge in the market.”
Bitcoin bounced at 7,400, but it remains below 20-day moving average
BTC/USD closed Tuesday with gains as the pair managed to bounce at 7,355 to close at 7,612. However, the cross was unable to break above the 20-day moving average for the third day.
Bitcoin is now trading 0.20% negative at 7,597 on Wednesday. To the upside, bitcoin needs to recover first the dynamic line at 7,600 and then break above the 20-day moving average at 7,680.
A close above those levels would open the doors to the 7,950 area and then the 50-day moving average at 8,480. Then, the pair would face the dynamic resistance coming from January 2018.
To the downside, if the pair manages to break below the 7,200, it will open the doors for more weakness with the 7,000 area as the primary support. Below that, 6,500 and the crucial 6,010.
Ethereum post some gains but it keeps trading below 20-day MA
As it occurred to bitcoin, Ethereum bounced back at the bottom of its range at 576.00, but the ETH/USD was unable to break above the 20-day moving average at 610.00.
ETH/USD is now trading 1.45% down on Wednesday at 598.80. The cross needs to break above the 20-day MA at 610.00 and then the 630.00 area to confirm the recovery.
Above the 630.00, it will find the immediate resistance at the 50-day moving average at 650.00; then the 200-day MA at 710.00.
To the downside, if the pair gets back below the 580.00 level, it will open the doors to the 560.00. Then, 500.00 will be the next significant area, and nothing else is in between there and the 400.00 area.